Forum Discussion
Calculate NPV for non regular date & amount
hussein_elsayed wrote: ``How to calculate the NPV``
See the XNPV help page. If your values are in B2:B34 and your dates are in C2:C34:
=XNPV(8%,B2:B34,$C$2:$C$34)
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hussein_elsayed wrote: ``for the modified table if we pay 1,500,000 during feb 22 amd pay 345,154 during sep 23 and pay the reset equaly``
I am not sure I understand. That does not match the data that you posted. So, my interpretation is: you want to compare the NPV of the posted cash flows with the NPV of the cash flows with the modifications that you describe.
See the attached Excel file.
Formulas:
B35: =SUM(B2:B34)
B36: =XNPV(8%, B2:B34, $C$2:$C$34)
D3: =ROUND((B35 - D2 - D8) / (COUNT(B3:B34) - 1), 0)
D4:D33 (except D8): =$D$3
D34: =B35 - SUM(D2:D33)
D35: =SUM(D2:D34)
D36: =XNPV(8%, D2:D34, $C$2:$C$34)
- This is a deferred sale and the normal one (the sent figures) , and for the numbers sent, it is the normal situation if the payment is made in the normal way. But if the customer pays an advance payment of 1,500,000 and the rest is as explained previously, what is the appropriate discount that the customer will get if we take into account that he paid an amount greater than what is supposed to be paid Also, if he pays irregular amounts in irregular months, bearing in mind that the discount rate is 8%.
I hope I have made it clear, and thank you in advancehussein_elsayed wrote: ``I hope I have made it clear``
I'm afraid not. My only "understanding" of the concept of "deferred sale" is in the context of a (US) deferred sale trust (click here), which I read about only just now(!).
Read: I don't really know much about it. And your description sounds like something very different altogether. I'm not sure I understand the context that you describe.
In hindsight, my "TMI" addendum might have added to the confusion. So, I will delete it.
I believe the calculations that I provided correctly demonstrate the difference in the NPV of the two payment streams, for what it's worth.
JoeUser2004 in the real estate company we sold units with installments over many years (8 YRS), we offer an option to the customers to change the default senario and pay large amount in advance to get an discount on the total price as shown in the attached file, so i need to make sure that i calculate it in accurate way as it has afinancial impact
