# Financial.NPV Method

**.NET Framework 2.0**

Returns a **Double** specifying the net present value of an investment based on a series of periodic cash flows (payments and receipts) and a discount rate.

**Namespace:** Microsoft.VisualBasic**Assembly:** Microsoft.VisualBasic (in microsoft.visualbasic.dll)

public static double NPV ( double Rate, /** @ref */ double[] ValueArray )

JScript does not support passing value-type arguments by reference.

#### Parameters

- Rate
Required.

**Double**specifying discount rate over the length of the period, expressed as a decimal.

- ValueArray
Required. Array of

**Double**specifying cash flow values. The array must contain at least one negative value (a payment) and one positive value (a receipt).

#### Return Value

Returns a**Double**specifying the net present value of an investment based on a series of periodic cash flows (payments and receipts) and a discount rate.

For more detailed information, see the Visual Basic topic NPV Function.

The net present value of an investment is the current value of a future series of payments and receipts.

The **NPV** function uses the order of values within the array to interpret the order of payments and receipts. Be sure to enter your payment and receipt values in the correct sequence.

The **NPV** investment begins one period before the date of the first cash flow value and ends with the last cash flow value in the array.

The net present value calculation is based on future cash flows. If your first cash flow occurs at the beginning of the first period, the first value must be added to the value returned by **NPV** and must not be included in the cash flow values of ValueArray.

The **NPV** function is similar to the **PV** function (present value) except that the **PV** function allows cash flows to begin either at the end or the beginning of a period. Unlike the variable **NPV** cash flow values, **PV** cash flows must be fixed throughout the investment.

This example uses the **NPV** function to return the net present value for a series of cash flows contained in the array `values()`. The return value, stored in `FixedRetRate`, represents the fixed internal rate of return.

' Define money format. Dim MoneyFmt As String = "###,##0.00" ' Define percentage format. Dim PercentFmt As String = "#0.00" Dim values(4) As Double ' Business start-up costs. values(0) = -70000 ' Positive cash flows reflecting income for four successive years. values(1) = 22000 values(2) = 25000 values(3) = 28000 values(4) = 31000 ' Use the NPV function to calculate the net present value. ' Set fixed internal rate. Dim FixedRetRate As Double = 0.0625 ' Calculate net present value. Dim NetPVal As Double = NPV(FixedRetRate, values) ' Display net present value. MsgBox("The net present value of these cash flows is " & _ Format(NetPVal, MoneyFmt) & ".")

Windows 98, Windows 2000 SP4, Windows CE, Windows Millennium Edition, Windows Mobile for Pocket PC, Windows Mobile for Smartphone, Windows Server 2003, Windows XP Media Center Edition, Windows XP Professional x64 Edition, Windows XP SP2, Windows XP Starter Edition

The .NET Framework does not support all versions of every platform. For a list of the supported versions, see System Requirements.