Topic: NPV CalculationSubscribe | Previous | Next
Dany Wehbeh 5/16/2020
Dear LEAP support,
I am trying to validate the results of LEAP in Excel in order to be able to perform sensitivity analysis outside LEAP. However, I am not able to understand why LEAP is not giving the same answers as Excel. I have even tried online calculators that showed my Excel NPV is correct.
In my basic parameters, I am setting the interest rate to 5%, no inflation, no annualization and the discount year is the first year of the model (2015). After I obtain the cost figures (cost of production), I copy them in Excel and calculate the NPV. The result is different than what LEAP gives. Below are some screenshots.
Here are the results in Excel
| Years | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | NPV 2015 (5%) | ||
| BAU | Total | 1612523379.86 | 1723685547.37 | 1803286889.33 | 1852410980.60 | 1843629348.25 | 1866935604.20 | 1888308316.98 | 1913191453.19 | 1938517238.37 | 1964402156.23 | 1991048004.49 | 2018093910.57 | 2045853351.50 | 2074249369.56 | 2103205828.03 | 2133043552.76 | $21,546,373,888.45 | |
| NG | Total | 1612523379.86 | 1723685547.37 | 1803286889.33 | 1852410980.60 | 1843629348.25 | 1641161882.83 | 1642227120.11 | 1543930457.23 | 1439143179.10 | 1329402149.21 | 1213725295.07 | 976025355.35 | 973458952.25 | 970584997.83 | 966608642.26 | 964095365.15 | $16,770,821,506.85 | |
| RE | Total | 1612523379.86 | 1725155547.37 | 1804301889.33 | 1853680980.60 | 1842462543.11 | 2075721277.09 | 2096696916.86 | 2109162081.72 | 2123341529.88 | 2137124627.88 | 2151024925.15 | 2164591278.09 | 2179891096.86 | 2193784462.63 | 2209440038.77 | 2224707096.20 | $22,663,273,350.63 | |
After some manual investigation, I noticed that LEAP is discounting correctly until 2015, but then decides to discount an additional half year at a rate of 2.5% (half my interest rate).
ANY HELP PLEASE?