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Finance
XNPV
The net present value of a series of cash flows that occur on irregular dates.
XNPV is an Excel function used by analysts for private equity, project finance, and irregular investment cash flows. It is more accurate than standard NPV when timings are messy.
It's NPV but for real life where money doesn't arrive on nice neat dates.
Real world: A startup receives investments and makes payments on random dates. XNPV calculates the true present value by using the exact dates of each cash flow instead of assuming regular periods.
💡 XNPV gives the correct present value when cash flows don't follow a neat schedule.