I have set up a table to compare a set of cashflows using XNPV and NPV. The cashflow is the same for both functions, it has a time zero investment followed by 600 monthly inflows.
I created a graph to show the differences of the calculated values vs. discount rate on the X axis. I was shocked at how far the curves diverge, at the end (600%) XNPV yields -14,353 and NPV yields -86,138.
I understand the formulas but I did not expect the difference to be so large. Is this to be expected? In my XNPV formula I included the initial investment in the range I passed and in NPV I did not, but subtracted it from the calculated NPV value (per the help file).
I am not sure if I could load a screen shot of my graph on this board or not.
thanks
Fred
I created a graph to show the differences of the calculated values vs. discount rate on the X axis. I was shocked at how far the curves diverge, at the end (600%) XNPV yields -14,353 and NPV yields -86,138.
I understand the formulas but I did not expect the difference to be so large. Is this to be expected? In my XNPV formula I included the initial investment in the range I passed and in NPV I did not, but subtracted it from the calculated NPV value (per the help file).
I am not sure if I could load a screen shot of my graph on this board or not.
thanks
Fred