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dexoey dexoey is offline
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Default Net Present Worth of reptitive costs?

Hi to all,

I am new user, have an urgent question and I wonder if you help me by. I am going to convert different costs during life time of a product to Net Present Worth (NPW), consisting Maintenance and Rehabilitation costs (M&Rj) and Salvage Value (SV), according to the following formula:
https://www.dropbox.com/s/38aeqvrz0w...%20Formula.jpg

SV occurs only once at the end of life time, itīs NPW in Excel can be calculated as following:

=PV(i discount, AP,0, SV,1)

but M&Rj costs occurs J time during life cycle, and formulating manually their mathematical formula most times takes much time. Exactly what should I write in the cell to get their total NPW? In other words, how can I get the following formula by Excel functions:
https://www.dropbox.com/s/nrcgo41j0b...ormula%202.jpg

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Reminder: NPW= FV( 1/(1+i Discount))^n
FV: future value
i Discount: discount rate
n: numbers of years (periods)


Thanks in advance

Last edited by dexoey : April 12th 13 at 11:45 PM