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das
 
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Default 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
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Niek Otten
 
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Default NPV calculations at the end of future years

NPV is for a series of payments.

Use

=50000/(1+10%)^3

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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



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bpeltzer
 
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Default 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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