What Is The Difference Between Npv And Xnpv?
The answer to this Financial modeling Question will be clear cut. There is a clear difference between NPV and XNPV. Both of these compute Net Present Value by looking into the future cash flows (positive & negative). The only difference between NPV and XNPV is: NPV assumes that the cash flows come in equal time intervals. XNPV assumes that the cash flows don’t come in equal time intervals. When there will be monthly or quarterly or yearly payments, one can easily use NPV and in the case not-so-regular payments, XNPV would be suitable.
