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Unformatted text preview: o Growing perpetuity: PMT/ (Int. RATE – Growth Rate) o Declining perpetuity: Same as above, but make growth rate negative • PV of uneven cash flows: o =NPV (rate, range of flows) o Leave out period 0 • FV of uneven cash flows: o =FV (rate, $(per)5 – (per)1, 0, cash flow for per. 1) for period one o Do this for all 5 periods o Sum the FVs together o *OR, =FV (rate, 5, 0, NPV (rate, range of cash flows)) • NPV: o =NPV (rate, range of cash flows at per. 1) – cash flow at per. 0 • IRR: o =IRR (range of cash flows at per. 0, guess)...
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 Spring '08
 Croce
 Annuity, Corporate Finance, Net Present Value, Perpetuity, Internal rate of return

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