No, till now, we have calculated MPB and Ayata for transactions, which were either at the start of
the year or at the end of the.
But practically, we often get payment in between the year, so suppose if you are getting a payment
at the end of January.
And in the second case, you are getting a payment at the start of December, not present value for
these two payments will be different because of the difference in days and months.
So if you have a parent town where you have debt and the amount that you are getting, you can use formula
such as Exxon, Peevey and Zaatar to include the effect of this as well.
Now, again, let's take an example.
Here we have to help John in deciding whether this investment is good for him or not.
He want to invest ten thousand dollars on first then or 2021, and in return he will get for payout's
first payout on 16th of May 22.
Second, build on 28 of September 3rd, build on 9th of 2025 and last built on 24th of June 2026.
Now, how can we calculate IRR and NPV in such case?
So when you have dates along with the cash flow details, you have to use X and NPV and X IRR formula.
Let's see how to do that.
We will ride equal to X NPV.
And then select the right.
Then we'll select the values and at last we will select the dates.
Now, one thing you have to note here is that in NPB here, we have to account for investment as well.
Earlier, we were ignoring the initial investment while taking NPV.
But here you have to account for this initial investment as well.
You can see that the net present value of this complete transaction is one thousand and 185 dollars.
Similarly, we can calculate IRR as well.
The formula is x ayata.
And again, first, we have to select the values.
And then we have to select the dates.
If you were to enter.
You can see that the irony in this investment is that only nine percent.
So since the IRR rate is greater than six percent or the discount rate and the NPV is also positive.
John should invest in this investment opportunity.
In this way, if you have cash flows on particular dates, you can still calculate NPV and Iara.