Net Present Worth of reptitive costs?

dexoey

New Member
Joined
Apr 12, 2013
Messages
2
Hi to all,

I am new user, have an urgent question and I wonder if you help me by. I am going to convert different costs during life time of a product to Net Present Worth (NPW), consisting Maintenance and Rehabilitation costs (M&Rj) and Salvage Value (SV), according to the following formula:
NPW%20Formula.jpg
https://www.dropbox.com/s/38aeqvrz0wrm9xc/NPW%20Formula.jpg

SV occurs only once at the end of life time, it´s NPW in Excel can be calculated as following:

=PV(i discount, AP,0, SV,1)

but M&Rj costs occurs J time during life cycle, and formulating manually their mathematical formula most times takes much time. Exactly what should I write in the cell to get their total NPW? In other words, how can I get the following formula by Excel functions:
https://www.dropbox.com/s/nrcgo41j0bg8sai/NPW Formula 2.jpgNPW Formula 2.jpg

---------------------------------------------------------------------------------
Reminder: NPW= FV( 1/(1+i Discount))^n
FV: future value
i Discount: discount rate
n: numbers of years (periods)


Thanks in advance
 

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