All right, so we are back to net present value one more time, but this time they are going to calculate
net present value with Exel even more smartly using X and baby formula.
So basically what we will try putting the net present value.
In the last video, we had encountered two problems.
The first problem was that we had to give the user zero cash flow out of the formula because our formula
was unable to handle the zero.
And secondly, we had to give our cash flows early, like each cash flow has to be at the end of year
one.
So we are going to resolve both of these problems with the formula of X and baby.
And in the same question, in the same format, I have just the dates here.
Now, you already have to return the net present value.
So this time this is starting directly with the coalition of X NPV.
So let's start X and Peevey and now X is asking you for the three arguments.
Number one is rate and then values and then dates.
So let's start with the rates.
Then let's talk about the values here.
Let's go here and the values, let's give the values and then let's select the dates.
So here we have selected the dates and I just I will just press the control enter and we will have our
own net present value.
So here you go.
We have the same calculation of net present value, but even smarter formula.
Now, the good thing about this is about this problem, about the scenario is that about this formula
that you can change that.
So, for example, let's say I'm saying that my my my problem is not starting.
My my scenario is my project is not starting from 2020.
Rather, it is starting from 2025.
So I just ended it.
I applied the formula and all the data it automatically.
And you can see that Excel has given you the same net present value even in that case.
Let's start from the first one as zero zero and will take in all the cash flows.
Now, what if I have to here I go in this formula and I change a date from 265 to one or the other,
say that my dates are changing by 180 days, by six months rather than by year.
So if I do that, you can see that I automatically take care of that.
It will change my present value to the different value that this formula is more versatile and more
powerful than the net present value itself.
I hope that is very helpful.