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Financial Modeling Assignment

This document contains calculations to determine the present value (PV) of a series of future values (FVs) using different interest rates and time periods. It provides: 1) A table calculating the PV of FVs over 10 years with a 20% interest rate using the formula, showing the PV is £4,935.64. 2) A second calculation of the same PV using the NPV function in a spreadsheet, giving the same result of £4,935.64. 3) A third example calculates the net present value (NPV) of a series of cash flows over 10 years with a 10% interest rate, showing the NPV is £19,579.66.

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Afsheen Abbasi
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41 views

Financial Modeling Assignment

This document contains calculations to determine the present value (PV) of a series of future values (FVs) using different interest rates and time periods. It provides: 1) A table calculating the PV of FVs over 10 years with a 20% interest rate using the formula, showing the PV is £4,935.64. 2) A second calculation of the same PV using the NPV function in a spreadsheet, giving the same result of £4,935.64. 3) A third example calculates the net present value (NPV) of a series of cash flows over 10 years with a 10% interest rate, showing the NPV is £19,579.66.

Uploaded by

Afsheen Abbasi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Q.

1
Years FV Q.2
i 20% 1 500
2 1050
3 1150 calculate PV by using i
4 1250 PV
5 1350 1. PV bu using formula
6 1450 2. PV by using NPV function
7 1550
8 1700
9 1850
10 1900

SOLUTION: Q1 SOLUTION:Q2
1. assuming PMT at the end of the ye
PV BY USING FORMULA
Years FV PV FV
1 500 416.6667
2 1050 729.1667
3 1150 665.5093 2. At the beginning of the year
4 1250 602.8164
5 1350 542.5347 FV
6 1450 485.6021
7 1550 432.5766
8 1700 395.3657
9 1850 358.5424
10 1900 306.8606

PV BY USING FORMULA IS 4935.641

PV BY USING NPV £4,935.64

SUBMITTED BY: HAMEEDUL


MBA
i 10%
Q.3
Years PMT Years
1 200 0 -10000
6% 2 200 1 2000
500 3 200 2 3000
4 200 3 6000
5 200 4 5000
6 200 5 4000
6 7000
Calculate FV 7 4500
8 9500
1. assuming PMT at the end of the year 9 8500
2. At the beginning of the year 10 1500
SOLUTION:Q2 SOLUTION:3
ng PMT at the end of the year Net present value of the project
Years FV
£685.80 0 -10000 -10000
1 2000 1818.182
2 3000 2479.339
beginning of the year 3 6000 4507.889
4 5000 3415.067
£769.51 5 4000 2483.685
6 7000 3951.318
7 4500 2309.212
8 9500 4431.82
9 8500 3604.83
10 1500 578.3149

NPV 19579.66

BY: HAMEEDULLAH ABBASI (01-120142-014)


MBA 2N
Calculate Net present value of the project

f the project

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