Excel Function Description - PV & NPV PDF

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Excel Function - PV & NPV - Theory and Application...

Description

rate nper pmt fv type Note:

PV (rate; nper; pmt; [fv]; [type]) Using the PV function rate of discount number of periods level periodical payments (for annuities) final additional cash flow (optional) 0 or 1, 1 means annuity is due (optional) Results have the opposite sign of pmt [fv]

rate value 1 value 2 value 3 … Note:

NPV(rate; value1; [value2]; [value3]; ... ) Using the NPV function rate of discount cash flow period 1 cash flow in period 2 cash flow in period 3 cash flows can be included as a range All cash flows are end-of-period

Below you find some simple exercises. Make your calculations in the cells containing ?. Answers are provided further below. Compute the (N)PV here rate nper pmt fv type t =0 1 ? 5% 5 250 0 0 2 ? 7% 3 0 5.000 0 3 ? 5% 5 250 0 1 250 4 ? 3% 5 ? 15% -3.000 6 ? 23% 7 425 1.000 0 Note: Cash flows are given explicitly and are also summarized as (nper; pmt; fv; type) whenever possible.

1 2 3 4 5 6

Answers €1.082,37 €4.081,49 €1.136,49 €1.985,02 €404,84 €1.648,77

rate 5% 7% 5% 3% 15% 23%

nper 5 3 5

7

pmt 250 0 250

425

fv 0 5.000 0

1.000

type 0 0 1

0

1 250

2 250

250

250

200 425

800 425

1 250

2 250

250

250

250

-3.000

200 425

800 425

t =0

3 250 5.000 250 300 1.500 425

3 250 5.000 250 300 1.500 425

4 250

Cash flows 5 250

250 300 1.000 425

4 250

300 800 425 Cash flows 5 250

250 300 1.000 425

300 800 425

6

7

8

9

10

300 700 425

300 500 1.425

300 300

300 200

300 100

6

7

8

9

10

300 700 425

300 500 1.425

300 300

300 200

300 100...