Is XNPV better compared to NVP?
The NPV is used to calculate Net Present Value for the selected period of times equally while XNPV is used to calculate more precisely to the corresponding dates array/values.
It would be recommended to use XNPV rather than NPV for specific dates or period time.
The syntax of XNPV Formula as:
=XNPV(Discount rate, Cash flaws, Dates of cash flaws)
Where,
Discount rate is the rate to be used over the period length
Cash Flows: An array that represents payments and incomes
Dates: Payments or Income's corresponding date array
And the result for XNPV is
Now I can compare NPV vs XNPV as the above I have already performed.
Here is the difference between NPV and XNPV value as NPV calculates the time period as a full time periond while XNPV calculates it considering the 06 months only.
Know more about NPV Formula NPV formula in Excel