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NPV with dynamic number of years

  1. #1
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    NPV with dynamic number of years

    Dear Friends,

    need help calculating the NPV where the number of years is a dynamic cell and the cash flows change in line with the number of years.

    I intend to make the number of years as a dynamic field.

    The actual expenses for each year are given below and the NPV calculation at the defined %.

    My intention is to get the cash flows of the expenses and the NPV calculation automatically as i change the number of years.

    Request all help.

    Thanks...

    Summary:
    No of Years 10
    Total Cost $1,153
    NPV $1,130

    0 1 2 3 4 5 6 7 8 9 10
    Cost $500 $100 $100 $100 $112 $112 $112 $125 $125 $125 $140
    NPV $1,130

  2. #2
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    Re: NPV with dynamic number of years

    You could use =OFFSET(), e.g.:

    =NPV("interest rate";OFFSET("first year's cashflow",,,,"number of years"))

    This will calculate NPV in year 0.
    Last edited by Søren Larsen; 04-18-2012 at 12:09 PM.
    Sincerely
    S?ren Larsen

    "Give a man a fish, and you'll feed him for a day. Give a man a fishing rod, and he'll steal your yacht!"

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    Re: NPV with dynamic number of years

    Soren,

    Thanks for your response ...i tried it ..however could not get the result.

    Here is an example of what am doing -

    the no of years cell is a dynamic cell and can be changed to any number between 1 to 10

    Based on that i would like to get the result in the two cells below 1) the total cost for the number of years selected 2) NPV of the cash flows for this period


    Could you please help with a formula that i can use for these two cells.

    Thanks again.

    No of years 10
    Total Cost 1,153
    NPV 1,130

    Year 0 1 2 3 4 5 6 7 8 9 10
    Cost 500 100 100 100 112 112 112 125.4 125.4 125.4 140.5
    NPV 1,130

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    Re: NPV with dynamic number of years

    EDIT:

    For NPV:
    =NPV("interest rate";OFFSET("first year's cashflow",,,,"number of years"))

    For total cost:
    =SUM(OFFSET("first year's cashflow",,,,"number of years"))
    Last edited by Søren Larsen; 04-18-2012 at 12:09 PM.

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    Re: NPV with dynamic number of years

    What is the interest rate?

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    Re: NPV with dynamic number of years

    currently using 12%

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    Re: NPV with dynamic number of years

    Soren,

    This works, thanks so much for your help.

    Really appreciate your help.

    Regards

  8. #8
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    Re: NPV with dynamic number of years

    Ok, assuming you input the interest rate in B1, the cashflow is input in B2:L2 and number of years in B3 then:

    =B2+NPV(B1;OFFSET(C2,,,,B3))

    For total cost:
    =SUM(OFFSET(C2,,,,B3))

    Does it work?

  9. #9
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    Re: NPV with dynamic number of years

    Quote Originally Posted by gorrepati View Post
    Soren,

    This works, thanks so much for your help.

    Really appreciate your help.

    Regards
    I am glad!

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