## I need to calculate Net Present Value

8
Unfortunately I was taught the lazy way to determine NPV by using Excel's NPV function. Has anyone here built this in Mendix?
15

The formula that we use on our project is as follows:

Legend: PV = Price N = Rental term i = Interest rate A = 1

Formula:

``````          NPV =         PV
----------- (divide)
1
[ 1 - -------- + 1 ]
(1+i)N-A
----------- (divide)
i
``````

So if:

PV = 1000 N = 36 months i = interest rate per month = 10% / 12 = 0.833% A= 1

Then the NPV calc will look like this:

``````  NPV    =            1000
-----------------
1
[ 1 - -------------  + 1 ]
(1+0.833%)36-1

-----------------
0.833%

=              1000
--------
1
[ 1 - ------- + 1 ]
1.33704
-------
0.833%

=              1000
--------
[ 1 - 0.747921 + 1 ]
--------
0.833%

=              1000
--------
[    0.252079  +1 ]
--------
0.833%

=              1000
--------
[    30.2495   +1 ]

=              1000
--------
[    31.2495      ]

NPV    =        32.00
``````