I need to calculate Net Present Value

8
Unfortunately I was taught the lazy way to determine NPV by using Excel's NPV function. Has anyone here built this in Mendix?
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4 answers
15

The formula that we use on our project is as follows:

Legend: PV = Price N = Rental term i = Interest rate A = 1

Formula:

          NPV =         PV
                    ----------- (divide)
                         1 
                [ 1 - -------- + 1 ]
                      (1+i)N-A
                    ----------- (divide)
                          i

So if:

PV = 1000 N = 36 months i = interest rate per month = 10% / 12 = 0.833% A= 1

Then the NPV calc will look like this:

  NPV    =            1000
                -----------------
                        1
             [ 1 - -------------  + 1 ]
                  (1+0.833%)36-1 

                -----------------
                      0.833%       


  =              1000
               --------    
                   1
          [ 1 - ------- + 1 ]    
                1.33704  
                -------
                0.833%



  =              1000
               --------    
         [ 1 - 0.747921 + 1 ]
               --------     
                0.833%


  =              1000
               --------
          [    0.252079  +1 ]
               --------
                0.833%


  =              1000
               --------
          [    30.2495   +1 ]


  =              1000
               --------
          [    31.2495      ] 


NPV    =        32.00
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npvflow

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