NPV without an outflow

Good morning

I am building a model consisting of future variable monthly cash outflows without any cash inflows.


I need to calculate the NPV of that in order to convert that into a liability using the variable cash outflows as down payments..


The NPV formula require cash in and cash out.


What are your suggestions?


Best Answers

  • @Roelofg 

    It is possible to calculate the NPV as per your table. 

    NPV can work with with data whose source is either dimensioned by time period or a transactions list. 

    I will outline both approaches;

    With Time


    Cashflows are laid out using time dimension.

    Without Time


    Time dimension has been removed and a transaction list added. 

    This is the result;


    The difference in values is due to the time calculation taking the full model calander and discounting over the full 3 years. The no time calculation only calculates for the values and dates presented and will stop discounting after the final transaction.




  • Misbah
    Answer ✓


    In Our April Group Event we discussed how NPV can be calculated without Anaplan timescale. Here is the link.



    Hope this helps



  • Hi @Roelofg 


    I would suggest that you come up with a mock up in excel, and share the screen shot here.




    Monthly 10001000100010001000100010001000100010001000100010001000 
    Variable      500     500   
    End of Contract              2000 
  • See below

  • Hi @Roelofg 


    Have you given the NPV formula a try?




  • Hi LipChean_Soh

    I used it but is concerned about the following statement:



    NPV(d, c, [m, t]) where


    • c: Number: Cash flow. Must have at least one negative and one positive value

    The cashflow does not have at least one negative. Does this have an impact on the answer?



  • Hi @Roelofg 


    Looking back at your example, how did you arrive at 16,422.3



    When i tried to do a mockup in Excel, i arrived at 11,560.3

    Please note that i moved 2000 to Feb21 to be added with the 1000 from Feb21.