Common questions about NPV usually fall into 3 areas: formula errors, function guidance, and result checking.
FAQ
What should I do if the NPV function returns an error?
- Check whether the formula starts with
=. - Confirm that parentheses, separators, and parameter count are correct.
- Review the syntax guidance that appears after typing
NPV(. - If the issue continues, check whether referenced cells contain invalid text or empty values.
How can I view guidance for the NPV function?
- Select any editable cell.
- Type
=NPV(. - Review the syntax guidance and parameter example that appears automatically.
- Continue entering the formula based on the prompt.
Why does my NPV result look incorrect?
- Check whether the referenced cells use numeric values.
- Confirm that the discount rate and cash flow range are referenced correctly.
- Check for circular references or an incorrect reference range.
- After adjusting the data, confirm that the result has recalculated.
Glossary
| Term | Definition |
|---|---|
| NPV | Net present value, a function used to calculate the present value of a series of cash flows at a given discount rate. |
| Syntax guidance | The parameter structure and examples shown while entering a function. |
| Cross-sheet reference | A reference to a cell or range from another worksheet in the current formula. |
| Nested calculation | A formula structure that combines multiple functions or expressions in one calculation. |