NPV

CFA General
#1

Does anyone know how to calculate the NPV of $63,000,000 discounted annually over 50 years at 6% using Excel? Thanks. PV = ? FV = $63,000,000.00 PMT = 0 I = 6% N = 50

#2

you mean like how to get excel to do 63/1.06^50? Edit: I can get my cell phone to do it.

#3

use function key

#4

use the NPV function, excel will ask for the required info or…do a google search for “calculate npv with excel”. first link gives a decent explanation :slight_smile:

#5

I don’t think excel has a function for this.

#6

=PV(rate,nper,pmt,fv)

#7

=PV(rate,nper,pmt,fv), you need type in there as well, 1 for beginning, 0 or nothing for ending.

#8

You can leave type out. It’s really only for people who have at least a remote idea of what they’re doing. Clearly this guy is lost already.

#9

I like to use excel to keep track of my grocery budget…the sum key makes it so easy.

#10

PV in excel is useful if there are payments to be made but there are no payments. It’s just what I wrote above, not an Excel function. BTW - in your head you could do the rule of 72 and get close. So 72/6 = 12 so an investment at 6% doubles every 6 years. That means that a 48 year investment doubles 4 times. Divide 63/2^4 some number slight less than 4. Then need to divide that by about 1.12 which is about 9/8 so a little less than 32/9 = 3.5 Real answer is 3.42 so approximating works pretty well here.

#11

I use visicalc on an off network apple 2e so microsoft can’t manipulate my excel files anymore.

#12

hey Joey, I forgot my financial calculator at home. Can you calculate the answer? Thanks!

#13

$3,420,166.79…

#14

virginCFAhooker Wrote: ------------------------------------------------------- > I use visicalc on an off network apple 2e so > microsoft can’t manipulate my excel files anymore. You know that Visicalc still works on a PC? You can download it free from various places. It’s pretty amazing that with all the revisions to the operating system, architecture, chips, etc. that one of the original programs still works.

#15

I just downloaded it. 26k! That’s less k than one boob of a nudey pict.

#16

thanks turkish

#17

"So 72/6 = 12 so an investment at 6% doubles every 6 years. " An amount earning 6% will double in about 12 years, not 6.

#18

"So 72/6 = 12 so an investment at 6% doubles every 6 years. " As good as you are Joey, only Chuck Norris can squeeze 24 months into a year.