Chapter 29 - UN-22BEXCEL'S NPV FUNCTIONDiscount...

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Unformatted text preview: UN-22BEXCEL'S NPV FUNCTIONDiscount rate10%Year12345Cash flow-1003533342516NPV$11.65 <-- =NPV(B3,C5:G5)+B5EXCEL'S IRR FUNCTIONYear12345Cash flow-1003533342516IRR15.00% <-- =IRR(B11:G11,0)15.00% <-- =IRR(B11:G11)ABCDEFG1234567891011121314UN-22DMULTIPLE IRRsCashYearflow-11,000115,000215,000315,000415,000515,000615,000715,000815,000915,00010-135,000IRR1.86% <-- =IRR(C5:C15,0.1)IRR135.99% <-- =IRR(C5:C15,2)Data table--NPV as function of discount rateDiscount rate10%NPV(11,000)Data table(11,000)<-- Header0%(11,000)Step12%12%(11,000)24%(11,000)36%(11,000)48%(11,000)60%(11,000)72%(11,000)84%(11,000)96%(11,000)108%(11,000)120%(11,000)132%(11,000)144%(11,000)156%(11,000)168%(11,000)180%(11,000)%12%24%36%48%60%72%84%96%108%12%132%144%156%168%18%- 5,000 10,000 15,000 20,000 25,000 NPV of Cash FlowsDiscount rateNPV ($)ABCDEFGH123456789101112131415161718192021222324252627282930313233343536373839UN-22FTHE PV FUNCTIONPayments made at the end of the periodRate10%Number of periods10Payment100Present value(614.46) <-- =PV(B4,B5,B6)Payments made at the beginning of the periodRate10%Number of periods10Payment100Present value(675.90) <-- =PV(B11,B12,B13,,1)ABCDE1234567891011121314THE PMT FUNCTIONPayments made at the end of the periodRate8%Number of periods10Principal1000Payment($149.03)<-- = PMT(C4,C5,C6)Payments made at the beginning of the periodRate8%Number of periods10Principal1000Payment($137.99)<-- =PMT(C11,C12,C13,,1)UN-22HLoan TableInterest8%Number of periods10Principal1,000 Annual payment149.03 <-- =-PMT(B3,B4,B5)Principal atSplit of payment betweenbeginningRepaymentYearof yearPaymentInterestof principal11,000.00 149.0380.0069.032930.97149.0374.4874.553856.42149.0368.5180.524775.90149.0362.0786.965688.95149.0355.1293.916595.03149.0347.60101.437493.60149.0339.49109.548384.06149.0330.73118.309265.76149.0321.26127.7710137.99149.0311.04137.99ABCDE1234567891011121314151617181920UN-22K...
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This note was uploaded on 02/02/2012 for the course BUSINESS 201 taught by Professor Acknan during the Spring '11 term at MIT.

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Chapter 29 - UN-22BEXCEL'S NPV FUNCTIONDiscount...

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