NPV Function

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Thread: NPV Function

  1. #1
    Dharma Guest

    Default NPV Function

    Hi there!<BR><BR>I was wondering if there is an in-built function in ASP for NPV (Net Present Value). If you know of such a function, please let me know.<BR><BR>Thanks very much,<BR><BR>Dharma

  2. #2
    Join Date
    Dec 1969

    Default RE: NPV Function

    Not builtin to ASP, but it&#039;s easy enough to write your own. Do you know the formula?<BR><BR>(I presume we are talking about present value of a loan with regular payments scheduled? If so, I think it is:<BR><BR>pv = pmt * ( ( 1 - ( 1 + periodicInterest ) ^ ( - numberOfPeriods ) ) / periodicInterest )<BR><BR>Yeah. That looks right. Usually written as<BR><BR>pv = pmt * ( 1 - (1+i)^-N ) / i<BR><BR>Just remember: The periodicInterest must be for the same period as is numberOfPeriods. So if the loan is paid monthly, periodicInterest is the *monthly* interest rate (1/12th of the annual rate). And, of course, the interest rate is expressed as a decimal, *not* as a percent.<BR><BR>Hokay?<BR><BR>

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