**Function stats**

FileMaker 7.0 +

30 January 2009

30 January 2009

1.1 **+ View history**

Yes

** Function overview**

**Prototype**

**Parameters **

**Description**

Tags: Financial

Returns the net present value (NPV) of a series of unequal future payments (negative values) and income (positive values) occuring at regular intervals, assuming a fixed interestRate per interval.

Same as Filemaker's native NPV() function - but payments do not need to be listed in a repeating field.

Use this function to calculate NPV. For example, if you invest a sum of money and get paid back unequal amounts over a period of several years, you can use the NetPresentValue function to calculate the net present value of your investment.

Examples

NetPresentValue ( List ( -2000 ; 600; 300; 500; 700; 400 ) ; 0.5 ) returns 156.9127744508813684

NetPresentValue ( List ( Payments::Amount ) ; 0.1 ) returns 16758.3560487050685808 when the related records in the Payments table contain the amounts of -5000 (the initial investment), 10,000, 0, 10,000, and 10,000.

NOTE:

The data for these examples comes from Filemaker's help on the NPV() function - in order to demonstrate that the custom function returns the same results as the native one.

However, in the original text the negative amounts -2000 and -5000 are called "the initial payment" or "the initial investment". Unfortunately, this is quite incorrect: the first amount in the series is presumed to be paid AT THE END of the first period, not at the beginning of the entire transaction, as one would expect.

To calculate the correct NPV in a situation where the series of payments is preceded by an initial income (or vice versa), calculate the NPV of future payments only and subtract the initial income from the result, e.g.:

NetPresentValue ( List ( 600; 300; 500; 700; 400 ) ; 0.5 ) - 2000

returns 164.7584131734254368.

**Examples**

**Sample input**

NetPresentValue ( List ( -2000 ; 600; 300; 500; 700; 400 ) ; 0.5 )

**Sample output**

156.9127744508813684

**Function code**

/*

NetPresentValue function

Author

*COMMENT Visual Realisation

Format

NetPresentValue ( listOfPayments ; interestRate )

Parameters

listOfPayments - a return-separated list of unequal payment amounts

interestRate - the interest rate per interval

Data type returned

number

Description

Returns the net present value (NPV) of a series of unequal future payments (negative values) and income (positive values) occuring at regular intervals, assuming a fixed interestRate per interval.

Same as Filemaker's native NPV() function - but payments do not need to be listed in a repeating field.

Use this function to calculate NPV. For example, if you invest a sum of money and get paid back unequal amounts over a period of several years, you can use the NetPresentValue function to calculate the net present value of your investment.

Examples

NetPresentValue ( List ( -2000 ; 600; 300; 500; 700; 400 ) ; 0.5 ) returns 156.9127744508813684

NetPresentValue ( List ( Payments::Amount ) ; 0.1 ) returns 16758.3560487050685808 when the related records in the Payments table contain the amounts of -5000 (the initial investment), 10,000, 0, 10,000, and 10,000.

NOTE:

The data for these examples comes from Filemaker's help on the NPV() function - in order to demonstrate that the custom function returns the same results as the native one.

However, in the original text the negative amounts -2000 and -5000 are called "the initial payment" or "the initial investment". Unfortunately, this is quite incorrect: the first amount in the series is presumed to be paid AT THE END of the first period, not at the beginning of the entire transaction, as one would expect.

To calculate the correct NPV in a situation where the series of payments is preceded by an initial income (or vice versa), calculate the NPV of future payments only and subtract the initial income from the result, e.g.:

NetPresentValue ( List ( 600; 300; 500; 700; 400 ) ; 0.5 ) - 2000

returns 164.7584131734254368.

*/

Let ( [

countPayments = ValueCount ( listOfPayments ) ;

payment = GetValue ( listOfPayments ; countPayments )

] ;

payment / ( 1 + interestRate )^countPayments

+

Case (

countPayments > 1 ;

NetPresentValue ( LeftValues ( listOfPayments ; countPayments - 1 ) ; interestRate )

)

)

// ===================================

/*

This function is published on FileMaker Custom Functions

to check for updates and provide feedback and bug reports

please visit http://www.fmfunctions.com/fid/193

Prototype: NetPresentValue( listOfPayments; interestRate )

Function Author: comment (http://www.fmfunctions.com/mid/108)

Last updated: 30 January 2009

Version: 1.1

*/

// ===================================

NetPresentValue function

Author

*COMMENT Visual Realisation

Format

NetPresentValue ( listOfPayments ; interestRate )

Parameters

listOfPayments - a return-separated list of unequal payment amounts

interestRate - the interest rate per interval

Data type returned

number

Description

Returns the net present value (NPV) of a series of unequal future payments (negative values) and income (positive values) occuring at regular intervals, assuming a fixed interestRate per interval.

Same as Filemaker's native NPV() function - but payments do not need to be listed in a repeating field.

Use this function to calculate NPV. For example, if you invest a sum of money and get paid back unequal amounts over a period of several years, you can use the NetPresentValue function to calculate the net present value of your investment.

Examples

NetPresentValue ( List ( -2000 ; 600; 300; 500; 700; 400 ) ; 0.5 ) returns 156.9127744508813684

NetPresentValue ( List ( Payments::Amount ) ; 0.1 ) returns 16758.3560487050685808 when the related records in the Payments table contain the amounts of -5000 (the initial investment), 10,000, 0, 10,000, and 10,000.

NOTE:

The data for these examples comes from Filemaker's help on the NPV() function - in order to demonstrate that the custom function returns the same results as the native one.

However, in the original text the negative amounts -2000 and -5000 are called "the initial payment" or "the initial investment". Unfortunately, this is quite incorrect: the first amount in the series is presumed to be paid AT THE END of the first period, not at the beginning of the entire transaction, as one would expect.

To calculate the correct NPV in a situation where the series of payments is preceded by an initial income (or vice versa), calculate the NPV of future payments only and subtract the initial income from the result, e.g.:

NetPresentValue ( List ( 600; 300; 500; 700; 400 ) ; 0.5 ) - 2000

returns 164.7584131734254368.

*/

Let ( [

countPayments = ValueCount ( listOfPayments ) ;

payment = GetValue ( listOfPayments ; countPayments )

] ;

payment / ( 1 + interestRate )^countPayments

+

Case (

countPayments > 1 ;

NetPresentValue ( LeftValues ( listOfPayments ; countPayments - 1 ) ; interestRate )

)

)

// ===================================

/*

This function is published on FileMaker Custom Functions

to check for updates and provide feedback and bug reports

please visit http://www.fmfunctions.com/fid/193

Prototype: NetPresentValue( listOfPayments; interestRate )

Function Author: comment (http://www.fmfunctions.com/mid/108)

Last updated: 30 January 2009

Version: 1.1

*/

// ===================================