Forum Discussion
NPV and Discount Rate
Hi everybody! I just ran into a strange behavior for the NPV formula, that I don't understand. I am used to the notion that the NPV of a given series of values decreases as the discount rate increa...
What I notice is that the absolute amount is decreasing. This makes me suspect that you may have just entered the various variables in the NPV function with a missing minus sign for one of them.
As an aside, when we get unusual or unexpected values from a function like NPV, the likelihood that it's a problem with Excel is virtually zero; far more likely that we've inadvertently done something incorrectly in using the function.