NPV calculations at the end of future years
Do I use the net present value function (PV) to get an answer of (negative)
-37,565 if we have a cash outflow of $50,000 at the end of the 3rd year at a 10% factor? I am using a text book and chart, but Id like to be able to use excel to calculate it. Once again, the texts answer is (37,565). Thank you for your help. -- das |
NPV calculations at the end of future years
NPV is for a series of payments.
Use =50000/(1+10%)^3 -- Kind regards, Niek Otten "das" wrote in message ... Do I use the net present value function (PV) to get an answer of (negative) -37,565 if we have a cash outflow of $50,000 at the end of the 3rd year at a 10% factor? I am using a text book and chart, but I'd like to be able to use excel to calculate it. Once again, the text's answer is (37,565). Thank you for your help. -- das |
NPV calculations at the end of future years
Yes, use PV: =PV(10%,3,0,50000). The PV function arguments are the periodic
rate, the number of periods, the payment made each period (none, since you have a single cash outflow), and the future value (50000, since that's the value at the end). "das" wrote: Do I use the net present value function (PV) to get an answer of (negative) -37,565 if we have a cash outflow of $50,000 at the end of the 3rd year at a 10% factor? I am using a text book and chart, but Id like to be able to use excel to calculate it. Once again, the texts answer is (37,565). Thank you for your help. -- das |
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