DISCOUNTED CASH FLOW PROBLEMS
 

hi all,

i'm a new user of excel and i am having trouble getting a DCF
(discounted cash flow) set up properly.

BLOCK B DISCOUNT RATE DATA
Nominal Rate 7.0000%
Frequency Of Compounding 12
Effective Rate For Frequency 0.5833%

CALCULATION OF RATE USED
Annual Effective Rate 7.2290%
Nominal Rate 7.0000%
Compounding Frequency 12
Effective Rate For Frequency Used 0.5833%

CASH FLOW (Received in arrears)

PERIOD + FLOW - FLOW +/- FLOW CHECK (1) CHECK (2)

0 $- $1,310,547.60 $1,310,547.60 -$3,306,998.72
$1,310,547.60
1 $- $110,547.60 $110,547.60 $110,547.60 $109,906.48
2 $- $110,547.60 $110,547.60 $110,547.60 $109,269.08
3 $- $110,547.60 $110,547.60 $110,547.60 $108,635.37
4 $- $110,547.60 $110,547.60 $110,547.60 $108,005.34
5 $- $110,547.60 $110,547.60 $110,547.60 $107,378.96
6 $- $110,547.60 $110,547.60 $110,547.60 $106,756.22
7 $- $110,547.60 $110,547.60 $110,547.60 $106,137.08
8 $- $110,547.60 $110,547.60 $110,547.60 $105,521.54
9 $- $110,547.60 $110,547.60 $110,547.60 $104,909.57
10 $- $110,547.60 $110,547.60 $110,547.60 $104,301.15
11 $- $110,547.60 $110,547.60 $110,547.60 $103,696.25
12 $- $110,547.60 $110,547.60 $110,547.60 $103,094.86
13 $- $110,547.60 $110,547.60 $110,547.60 $102,496.96
14 $- $110,547.60 $110,547.60 $110,547.60 $101,902.53
15 $3,310,837.85 $110,547.60 $3,421,385.45 $3,421,385.45
$3,135,534.93

NPV @ 0.5833% per period $4,617,546.32 $5,928,093.92
IRR of CHECK (1) FLOW = 0.0900% 3.3489% per period



basically i have a asset purchased for 1.2 million and is held over 15
years with nil income but 110,547.60 outgoins every year. it is then
sold for 3.310 million.

can anyone help me to complete the picture to get it to add up? as i
am unfamiliar with DCF's it may already be adding up, can someone
please help me?

'Kind regards