How to calculate NPV in Anaplan to match Excel's NPV?

Ernie_Goff
Ernie_Goff
in Modeling

Since the current NPV formula in Anaplan is similar to Excel's XNPV, Anaplan NPV results can fail to match Excel NPV results. This situation can lead to a lack of confidence in Anaplan's calculations when they are compared to an established Excel workbook model.

Is there a method within Anaplan that can be deployed so that, for a given series of data, Anaplan can generate an NPV that will match results generated by Excel's NPV formula?

 

Thanks!

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Answers

  • andrew_snape
    andrew_snape

    There is some information in this associated post about limiting the time range over which the formula operates.

    https://community.anaplan.com/t5/Formulas-Functions/Help-with-NPV-Function-Anaplan-differing-from-Excel/td-p/7527

  • Ernie_Goff
    Ernie_Goff

    Hi - 

    I just wanted to post a quick follow-up to this issue. There is a complicating factor in my use case which underscores the need for a modified approach. The use case I'm working on considers NPV of 100 years of cash flows. This makes adapting the current 'Time' dependent NPV formula impractical due to the length of the time considered in the use case.

     

    A workaround was put in place where the individual period NPV values were calculated in a stand-alone module for all 1200 'months' and then aggregated into the results module via formula.

     

    (Note: the periodic discount rate was calculated using the POWER(1+ annual rate,1/12)-1 formula in order to match Excel's NPV formula)

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