Exam_3__Formulas

Exam_3__Formulas - QBA 2305 Exam 3 Formulas Time Value of...

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Time Value of Money Lump Sum: FV = PV (1 + R) T T R) (1 FV PV + = Annuity (a series of equal periodic payments): PV = Payment*[1 - (1 + R) -T ] ÷ R FV = Payment*[(1 + R) T - 1] ÷ R Microsoft Excel financial functions: Present Value, Future Value (Lump sum and annuities) = FV (rate, nper, pmt, pv, type) = PV (rate, nper, pmt, fv, type) = NPV ( rate, value1, value2,. ..) Rate of return: = IRR ({-investment cost, cash flow1, cash flow2, . .} ) = RATE (nper, pmt, pv, fv, type) Sinking Fund: = PMT (rate, nper, pv, fv, type) Net Present Value of an Investment: = NPV (Rate of Return of Best Alternative, Cash Return1, Cash Return 2, . . .) – Initial Cost of Investment _____________________________________________________________________________________ TI Graphing Calculator TVM functions tvm_Pmt(N, I%, PV, FV, P/Y, C/Y) tvm_PV(N, I%, PMT, FV, P/Y, C/Y) tvm_FV(N, I%, PMT, PV, P/Y, C/Y) npv( I%, - I O, {cash return1, cash return2, . . . }),  where 
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This note was uploaded on 04/26/2009 for the course QBA 2305 taught by Professor Hulme during the Spring '08 term at Baylor.

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Exam_3__Formulas - QBA 2305 Exam 3 Formulas Time Value of...

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