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Unformatted text preview: Rate 15%(Same as .15) Year NPER Cash Flow Future Value 1 4 1000 $1,749.01 2 3 3000 $4,562.63 3 2 5000 $6,612.50 4 1 7000 $8,050.00 5 9000 $9,000.00 Total PV $29,974.13 =SUM(D6:D10) Comments: The negative sign before the FV formula makes th Ex 2 Slide 6 Rate 9% Year NPER Cash Flow Future Value 5 500 $769.31 Consider the cash flows presented in the table bel cash flows in year 5? The dollar signs around B3 make the rate an abso may be entered once and then copied down. The formua asks for a payment between number o hence the 0. 1 4 600 $846.95 2 3 $0.00 3 2 $0.00 4 1 $0.00 5 $0.00 Total PV $1,616.26 =SUM(D21:D25) Ex 3 slide 7 Rate 8% Year NPER Cash Flow Future Value 1 4 100 $136.05 2 3 $0.00 3 2 300 $349.92 4 1 $0.00 5 $0.00 Total PV $485.97 Formula =FV($B$3,B6,0,C6) =FV($B$3,B7,0,C7) =FV($B$3,B8,0,C8) =FV($B$3,B9,0,C9) =FV($B$3,B10,0,C10) he result positive. Formula =FV($B$18,B21,0,C21) low. What is the value of the olute reference so that the formula of periods and present value, =FV($B$18,B22,0,C22) =FV($B$18,B23,0,C23) Consider the cash flows presented in the Ex 1 slide 8 Rate 12%(Same as .15) Year Cash Flow Present Value 1 200 $178.57 2 400 $318.88 3 600 $427.07 4 800 $508.41 5 $0.00 Total PV $1,432.93 Comments: The negative sign before the PV formula m The formua asks for a payment between n The dollar signs around B3 make the rate be entered once and then copied down. table below. What is the present value? Formula =PV($B$3,A6,0,B6) =PV($B$3,A7,0,B7) =PV($B$3,A8,0,B8) =PV($B$3,A9,0,B9) =PV($B$3,A10,0,B10) =SUM(C6:C10) makes the result positive. number of periods and future value, hence the 0. e an absolute reference so that the formula may Consider the cash flows presented in the Ex 2 slide 9 Rate 10% Year Cash Flow Present Value 1 1000 $909.09 2 2000 $1,652.89 3 3000 $2,253.94 4 $0.00 5 $0.00 Total PV $4,815.93 $4,815....
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This note was uploaded on 12/16/2010 for the course FIN 100 taught by Professor Smith during the Spring '10 term at twsu.edu.
 Spring '10
 Smith
 Finance, Future Value

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