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This document provides a summary of spreadsheet functions in Excel for financial calculations including: 1) Present and future worth calculations using the PV, FV, and NPV functions for constant and varying cash flows. 2) Annual payment calculations using the PMT and IRR functions for single amounts, cash flow series, and embedded NPV values. 3) Number of periods calculations using the NPER function for constant cash flows. 4) Interest rate calculations using the RATE and EFFECT functions. It also provides depreciation and logical IF functions.

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Mehmet Kemal Yüksel
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15 views2 pages

For Müller

This document provides a summary of spreadsheet functions in Excel for financial calculations including: 1) Present and future worth calculations using the PV, FV, and NPV functions for constant and varying cash flows. 2) Annual payment calculations using the PMT and IRR functions for single amounts, cash flow series, and embedded NPV values. 3) Number of periods calculations using the NPER function for constant cash flows. 4) Interest rate calculations using the RATE and EFFECT functions. It also provides depreciation and logical IF functions.

Uploaded by

Mehmet Kemal Yüksel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Format for Spreadsheet Functions on Excel©

Present worth: Contents of ( )

 PV(i%, n, A, F) for constant A series; single F value

 NPV(i%,second_cell:last_cell)  first_cell for varying cash flow series

Future worth:

 FV(i%, n, A, P) for constant A series; single P value

Annual worth:

 PMT(i%, n, P, F) for single amounts with no A series

 PMT(i%, n, NPV) to find AW from NPV; embed NPV function

Number of periods (years):

 NPER(i%, A, P, F) for constant A series; single P and F

(Note: The PV, FV, and PMT functions change the sense of the sign. Place a minus in front of the
function to retain the same sign.)

Rate of return:

 RATE(n, A, P, F) for constant A series; single P and F

 IRR(first_cell:last_cell) for varying cash flow series

Interest rate:

 EFFECT(r%, m) for nominal r, compounded m times per period

 NOMINAL(i%, m) for effective annual i, compounded m times


per year

Depreciation:

 SLN(P, S, n) straight line depreciation for each period

 DDB(P, S, n, t, d) double declining balance depreciation for


period t at rate d (optional)

 DB(P,S,n,t) declining balance, rate determined by the


function

 VBD(P,0, n,MAX(0, t1.5), MACRS depreciation for year t at rate d for


MIN(n, t0.5), d) DDB or DB method

Logical IF function:

 IF(logical_test,value_if_true,value_if_false) for logical two-branch operations


ParkCh03ff.qxd 6/2/06 5:38 PM Page 108

108 CHAPTER 3 Interest Rate and Economic Equivalence

TABLE 3.4 Summary of Discrete Compounding Formulas with Discrete Payments

Factor Cash Flow


Flow Type Notation Formula Excel Command Diagram
S Compound F = P11 + i2N
I amount = FV1i, N, P,, 02 F
N (F/P, i, N) 0
G Present N
L worth P = F11 + i2-N = PV1i, N, F,, 02 F
E (P/F, i, N)
E Compound 11 + i2N - 1
Q amount F = Ac d = PV1i, N, A,, 02
i
U (F/A, i, N)
A F
0 1 2 3 N1
L N

P Sinking = PMT1i, N, P, F, 02 AAA AA


A = Fc d
i
11 + i2N - 1
A fund
Y (A/F, i, N)
M
E
N
T Present 11 + i2N - 1
worth P = Ac d = PV1i, N, A,, 02
(P/A, i, N) i11 + i2N AAA AA
S
E 1 2 3 N1N
R Capital i11 + i2N
d
11 + i2N - 1
I recovery A = Pc = PMT1i, N,, P2
E (A/P, i, N)
S

G Linear
R gradient
A 11 + i2N - iN - 1
d
(N2)G
i 11 + i2
D Present P = Gc 2 N 2G
I worth G
E (P/G, i, N)
11 + i2N - iN - 1
N 1 23 N1N
T Conversion factor A = Gc d P
i[11 + i2N - 1]
(A/G, i, N)

S Geometric
E gradient 1 - 11 + g2N11 + i2-N A1(1g)N1
R A1 c d A3
i - g A2
I Present P = D A1
A1 a b1if i = g2
worth N
E
S 1P/A 1, g, i, N2 1 + i 123 N
P

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