Present Values

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DavidA

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Sep 11, 2006
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I am attempting to calculate a present value of a series of cashflows. Beyond year 1, the answer is incorrect when compared to a financial calculator. I believe that I am inputing the info incorrectly. Can anyone explain.
 

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Welcome to the board!

There are many people here who coul dprobably explain. Could you please post the formula you are using, and the expected results? Otherwise, it is tought to speculate on what might be happenning.
 
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I am attempting to calculate a present value of a series of cashflows. Beyond year 1, the answer is incorrect when compared to a financial calculator. I believe that I am inputing the info incorrectly. Can anyone explain.
Click to expand...
When you use multiple years, make sure to include the total number of months in "nper", assuming the interest rate compounds monthly.
 
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I am attempting to calculate a present value of a series of cashflows. Beyond year 1, the answer is incorrect when compared to a financial calculator. I believe that I am inputing the info incorrectly. Can anyone explain.
Click to expand...
When you use multiple years, make sure to include the total number of months in "nper", assuming the interest rate compounds monthly.
Click to expand...

Also worthy of note is that the Rate, if expressed as an Annual Percentage Rate. needs to be divided by the number of periods per year, usually 12, for monthly payments.
 
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DavidA,
I don't think you're fully understanding the PV concept and how to use it in Excel. Or maybe I don't fully understand your post.

*How long will cashflow occur?
*Amount of each?
*Discount rate?

Adam
 
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