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Profitability Index--More Elegant Equation
Hi,
I am using the following equation as my Profitability Index: {=IF(ISERROR(-NPV(Rate, IF(SIGN(CF)=1, CF, 0))/NPV(Rate, IF(SIGN(CF)=-1, CF, 0))), "Not Applic.", -NPV(Rate, IF(SIGN(CF)=1, CF, 0))/NPV(Rate, IF(SIGN(CF)=-1, CF, 0)))} Rate=discount rate CF=cash flow I am simply taking NPV of positive values divided by NPV of negative values. And if there is an error, a "Not Applic" note is displayed. This is for a large project that spans more than one year during its construction. So NPV of negative values is necessary. Although the current equation works, is there a more elegant way of writing this equation? Perhaps something that doesn't use formula arrays. Thank you. Best regards, Kevin |
#2
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Profitability Index--More Elegant Equation
Try ... ={-NPV(Rate,max(SIGN(CF),0))/NPV(Rate,(Min(SIGN(CF),0)} I think using max and min is much more faster then the if statement. Samo ... good luck -- Samo ------------------------------------------------------------------------ Samo's Profile: http://www.excelforum.com/member.php...o&userid=34413 View this thread: http://www.excelforum.com/showthread...hreadid=541868 |
#3
Posted to microsoft.public.excel.misc
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Profitability Index--More Elegant Equation
Try ...
={-NPV(Rate,max(SIGN(CF),0))/NPV(Rate,(Min(SIGN(CF),0)} I think using max and min is much more faster then the if statement. Samo ... good luck Samo, Thank you for your help. Best regards, Kevin |
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