fm3_chapter33

fm3_chapter33 - UN-22B A 1 2 3 4 5 6 Discount rate Year...

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UN-22B EXCEL'S NPV FUNCTION Discount rate 10% Year 0 1 2 3 4 5 Cash flow -100 35 33 34 25 16 NPV $11.65 ### A B C D E F G 1 2 3 4 5 6
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NPV POTENTIAL PROBLEM Discount rate 15% Year Cash flow 1 0 2 0 3 100 Present value 65.75 #MACRO? Year Cash flow 1 2 3 100 Present value 86.96 #MACRO? A B C 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
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UN-22B EXCEL'S IRR FUNCTION Year 0 1 2 3 4 5 Cash flow -100 35 33 34 25 16 IRR 15.00% ### 15.00% ### A B C D E F G 1 2 3 4 5 6
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UN-22D MULTIPLE IRRs Year 0 -11,000 1 15,000 2 15,000 3 15,000 4 15,000 5 15,000 6 15,000 7 15,000 8 15,000 9 15,000 10 -135,000 IRR 1.86% ### IRR 135.99% ### Data table--NPV as function of discount rate Discount rate 10% NPV 23,337 Data table 23,337 <-- Header 0% (11,000) Step 12% 12% 25,457 24% 26,775 36% 21,812 48% 16,655 60% 12,408 72% 9,079 84% 6,480 96% 4,427 108% 2,781 120% 1,439 132% 328 144% (605) 156% (1,398) 168% (2,080) 180% (2,672) Cash flow 0% 12% 24% 36% 48% 60% 72% 84% 96% 108% 120% 132% 144% 156% 168% 180% - 5,000 10,000 15,000 20,000 25,000 NPV of Cash Flows Discount rate NPV ($) A B C D E F G H 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39
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UN-22F THE PV FUNCTION Payments made at the end of the period Rate 10% Number of periods 10 Payment 100 Present value (614.46) #MACRO? Payments made at the beginning of the period Rate 10% Number of periods 10 Payment 100 Present value (675.90) #MACRO? A B C 1 2 3 4 5 6 7 8 9 10 11 12
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THE PMT FUNCTION Payments made at the end of the period Rate 8% Number of periods 10 Principal 1000 Payment -149.03 #MACRO? Payments made at the beginning of the period Rate 8% Number of periods 10 Principal 1000 Payment -137.99 #MACRO? A B C 1 2 3 4 5 6 7 8 9 10 11 12
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UN-22H Loan Table Interest 8% Number of periods 10 Principal 1,000 Annual payment 149.03 ### Split of payment between Year Payment 1 1,000.00 149.03 80.00 69.03 #MACRO? 2 930.97 149.03 74.48 74.55 3 856.42 149.03 68.51 80.52 4 775.90 149.03 62.07 86.96 5 688.95 149.03 55.12 93.91 6 595.03 149.03 47.60 101.43 7 493.60 149.03 39.49 109.54 8 384.06 149.03 30.73 118.30 9 265.76 149.03 21.26 127.77 10 137.99 149.03 11.04 137.99 Principal at beginning of year Repayment of principal =-PMT(B2,B3,B4) =$B$2*B9 =B9-E9 A B C D E F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
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IPMT AND PPMT Interest 8% Number of periods 10 Principal 1,000 Year 1 $69.03 #MACRO? $80.00 2 $74.55 #MACRO? $74.48 3 $80.52 $68.51 4 $86.96 $62.07 5 $93.91 $55.12 6 $101.43 $47.60 7 $109.54 $39.49 8 $118.30 $30.73 9 $127.77 $21.26 10 $137.99 $11.04 Principal payment at end year Interest payment at end year A B C D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
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#MACRO? #MACRO? E 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
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FORMATTING NOW(), TODAY(), DATE() Serial representation Date/time format 01/25/11 07:06 AM 1/25/2011 7:06 #MACRO? 01/25/11 1/25/2011 #MACRO? 03/26/99 3/26/1999 #MACRO? Different formatting of Now() January 25, 2011 #MACRO? 1/25/2011 7:06 #MACRO? 7:06 AM #MACRO? When was day 1? 01/01/00 #MACRO? A B C 1 2 3 4 5 6 7 8 9 10 11 12 13
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WEEKDAY() AND MONTH() 3-Nov-01 7 #MACRO? 7 #MACRO? 11 #MACRO? 12 #MACRO? In Weekday , 1=Sunday, 2=Monday, etc.
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DATEDIF COMPUTES D Date1 3-Apr-47 Date2 22-Dec-02 #NAME? #MACRO? #NAME? #MACRO? #NAME? #MACRO? #NAME? #MACRO? #NAME? #MACRO? #NAME? #MACRO? A B 1 2 3 4 5 6 7 8 9 10 11
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DIFFERENCE BETWEEN TWO DATES Explanation Number of years between dates Number of months between dates Number of days between dates Number of days in excess of full number of mnths Number of months in excess of full number of years Number of days in excess of full number of years C 1 2 3 4 5 6 7 8 9 10 11
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fm3_chapter33 - UN-22B A 1 2 3 4 5 6 Discount rate Year...

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