How to calculate PV10

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livemusic

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I need to calculate present value of the projected revenue from an oil well. In the financial/investment world, they are always talking about PV10. I assume that this is the present value of a projected revenue stream for a given well, using a discount rate of 10%.

In B21 through Z21, I have the projected revenue for years 1-25. Can you tell me the formula I need? I've read up on this and am not totally sure, it's confusing.
 

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livemusic said:
I need to calculate present value of the projected revenue from an oil well. In the financial/investment world, they are always talking about PV10. I assume that this is the present value of a projected revenue stream for a given well, using a discount rate of 10%.

In B21 through Z21, I have the projected revenue for years 1-25. Can you tell me the formula I need? I've read up on this and am not totally sure, it's confusing.
Click to expand...

Try this:

Code: 
=NPV(.10,B21:Z21)
 
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