Date differnce

End of month beween A8 & A9

6 months from A8 what
for A8 (for in months
will be the expected
current
date?
month)
EDATE EOMONTH DATEDIF DAY MONTH
23-Nov-23 23-May-24 30-Nov-23 12 23 11
9-Dec-24 9-Jun-24 31-Dec-23 1

6 months End of month

before A8 for the next
what was the month from Date
date? A8 difference
beween A8 &
A9 in years

23-Aug-24 23-Aug-45 9
1-Sep-24 10-Dec-24

28-Aug-24
23-Nov-46 10-Mar-26
3/5/2025
5/31/1907
9
11/30/2030 4/13/1900
-104 28

3/5/2025
3/5/2025 8:44

5
YEAR DATE
2023 11/23/2023

Date Month Year

1 1 2024 1/1/2024
2 2 9/14/2028
3 3
4 4
5 5
6 6
7 7
8 8 4/15/2026
9 9
10 10
11 11
12 12
29-Jul-30 13
14
15
16
7/12/2005 17
18
19
20
21
22
23
24
25
26
27
28
29
30
 Financial functions in Excel

If a customer can afford 5000/month installment, PV() ₹ 229,965.17

for next 5 years. If the rate is 11% p.a.
How much Loan amount he can be sanctioned?
(What is its worth as on today?)

Find the present value of an investment that will pay

50000 in 5 years with an annual interest rate of 7%. ₹ 50,000.00

Compounded Periods /Year

Rate 7% Monthly 12
No of Years 5 Quarterly 4
Future Value 50000 Semi-Annually 2
Type 0 Annually 1

Installment for a car loan of PMT() $124,499.26

200000, @ 9%, for 5 years

Rate for housing loan of Rs 1000000

for 10 years where payment per month is 13775. RATE() 0.92%
for doing it pe 0.10999998
Nper= 12*10, pmt=-13775, PV= 1000000, type 0= exact value, 1= decimals

Rate= 11%, Period is 10 years and Loan = 1000000 so find PMT Err:523

Future Value of Rs 10000 payment made every month FV() ₹ 106,136.36

for 1 year @ 8% per annum

instalment of car loan of 200000 @9% for 5 years ₹ 4,151.67

we use PMT

In how much time I can double my investment, if the NPER() 18.222652211

maximum rate of interest is 9% p.a.?
59.999836709

PMT conprises of Interest and principal

for interest principal

ipmt ppmt
 How PV works
How FV works
1 5000 4954.582989 1 10000 10066.67
2 5000 4909.57852 2 10000 10133.78
3 5000 4864.982843 3 10000 10201.34
4 5000 4820.792248 4 10000 10269.35
5 5000 4777.003053 5 10000 10337.81
6 5000 4733.611613 6 10000 10406.73
7 5000 4690.614315 7 10000 10476.1
8 5000 4648.007579 8 10000 10545.95
PV 9 5000 4605.787857 9 10000 10616.25
₹ 35,270.25 10 5000 4563.951634 10 10000 10687.03
₹ 35,341.23 11 5000 4522.495426 11 10000 10758.27
₹ -1,116,754.96 12 5000 4481.415781 12 10000 10830
13 5000 4440.70928
14 5000 4400.372531
15 5000 4360.402178
16 5000 4320.794892 1 10000 10066.67
17 5000 4281.547374 2 20066.67 20200.44
₹ 4,151.67 18 5000 4242.656357 3 30200.44 30401.78
₹ 199,967.67 19 5000 4204.118603 4 40401.78 40671.13
0.75% 20 5000 4165.930904 5 50671.13 51008.93
21 5000 4128.090078 6 61008.93 61415.66
22 5000 4090.592976 7 71415.66 71891.76
₹ 999,999.92 23 5000 4053.436475 8 81891.76 82437.71
24 5000 4016.617481 9 92437.71 93053.96
25 5000 3980.132929 10 103054 103741
26 5000 3943.979781 11 113741 114499.3
27 5000 3908.155027 12 124499.3 125329.3
28 5000 3872.655683
for once a month PV 29 5000 3837.478794
for every month PMT 30 5000 3802.621431
31 5000 3768.080691
32 5000 3733.853699
33 5000 3699.937604
34 5000 3666.329583
35 5000 3633.026837
36 5000 3600.026593
37 5000 3567.326104
38 5000 3534.922646
39 5000 3502.813522
40 5000 3470.996059
41 5000 3439.467606
42 5000 3408.225538
43 5000 3377.267255
44 5000 3346.590178
45 5000 3316.191754
46 5000 3286.069451
47 5000 3256.22076
48 5000 3226.643198
49 5000 3197.3343
50 5000 3168.291627
51 5000 3139.51276
52 5000 3110.995303
53 5000 3082.736881
54 5000 3054.735143
55 5000 3026.987755
56 5000 2999.492408
57 5000 2972.246812
58 5000 2945.248699
59 5000 2918.495821
60 5000 2891.985949
LoanAmount Rate Period in Yrs PMT()
200000 9% 5

Period(Month) Interest(IPMT) Principal(PPMT) EMI

1 ₹ 1,500.00 ₹ 2,651.67 ₹ 4,151.67 Why interest is decreasing
2 ₹ 1,480.11 ₹ 2,671.56 ₹ 4,151.67
3 ₹ 1,460.08 ₹ 2,691.60 ₹ 4,151.67
4 ₹ 1,439.89 ₹ 2,711.78 ₹ 4,151.67
5 ₹ 1,419.55 ₹ 2,732.12 ₹ 4,151.67
6 ₹ 1,399.06 ₹ 2,752.61 ₹ 4,151.67
7 ₹ 1,378.41 ₹ 2,773.26 ₹ 4,151.67
8 ₹ 1,357.62 ₹ 2,794.06 ₹ 4,151.67
9 ₹ 1,336.66 ₹ 2,815.01 ₹ 4,151.67
10 ₹ 1,315.55 ₹ 2,836.12 ₹ 4,151.67
11 ₹ 1,294.28 ₹ 2,857.39 ₹ 4,151.67
12 ₹ 1,272.85 ₹ 2,878.82 ₹ 4,151.67
13 ₹ 1,251.25 ₹ 2,900.42 ₹ 4,151.67
14 ₹ 1,229.50 ₹ 2,922.17 ₹ 4,151.67
15 ₹ 1,207.59 ₹ 2,944.09 ₹ 4,151.67
16 ₹ 1,185.50 ₹ 2,966.17 ₹ 4,151.67
17 ₹ 1,163.26 ₹ 2,988.41 ₹ 4,151.67
18 ₹ 1,140.85 ₹ 3,010.83 ₹ 4,151.67
19 ₹ 1,118.26 ₹ 3,033.41 ₹ 4,151.67
20 ₹ 1,095.51 ₹ 3,056.16 ₹ 4,151.67
21 ₹ 1,072.59 ₹ 3,079.08 ₹ 4,151.67
22 ₹ 1,049.50 ₹ 3,102.17 ₹ 4,151.67
23 ₹ 1,026.23 ₹ 3,125.44 ₹ 4,151.67
24 ₹ 1,002.79 ₹ 3,148.88 ₹ 4,151.67
25 ₹ 979.18 ₹ 3,172.50 ₹ 4,151.67
26 ₹ 955.38 ₹ 3,196.29 ₹ 4,151.67
27 ₹ 931.41 ₹ 3,220.26 ₹ 4,151.67
28 ₹ 907.26 ₹ 3,244.41 ₹ 4,151.67
29 ₹ 882.92 ₹ 3,268.75 ₹ 4,151.67
30 ₹ 858.41 ₹ 3,293.26 ₹ 4,151.67
31 ₹ 833.71 ₹ 3,317.96 ₹ 4,151.67
32 ₹ 808.83 ₹ 3,342.85 ₹ 4,151.67
33 ₹ 783.75 ₹ 3,367.92 ₹ 4,151.67
34 ₹ 758.49 ₹ 3,393.18 ₹ 4,151.67
35 ₹ 733.05 ₹ 3,418.63 ₹ 4,151.67
36 ₹ 707.41 ₹ 3,444.27 ₹ 4,151.67
37 ₹ 681.57 ₹ 3,470.10 ₹ 4,151.67
38 ₹ 655.55 ₹ 3,496.12 ₹ 4,151.67
39 ₹ 629.33 ₹ 3,522.34 ₹ 4,151.67
40 ₹ 602.91 ₹ 3,548.76 ₹ 4,151.67
41 ₹ 576.29 ₹ 3,575.38 ₹ 4,151.67
42 ₹ 549.48 ₹ 3,602.19 ₹ 4,151.67
43 ₹ 522.46 ₹ 3,629.21 ₹ 4,151.67
44 ₹ 495.24 ₹ 3,656.43 ₹ 4,151.67
45 ₹ 467.82 ₹ 3,683.85 ₹ 4,151.67
46 ₹ 440.19 ₹ 3,711.48 ₹ 4,151.67
47 ₹ 412.36 ₹ 3,739.32 ₹ 4,151.67
48 ₹ 384.31 ₹ 3,767.36 ₹ 4,151.67
49 ₹ 356.05 ₹ 3,795.62 ₹ 4,151.67
50 ₹ 327.59 ₹ 3,824.08 ₹ 4,151.67
51 ₹ 298.91 ₹ 3,852.76 ₹ 4,151.67
52 ₹ 270.01 ₹ 3,881.66 ₹ 4,151.67
53 ₹ 240.90 ₹ 3,910.77 ₹ 4,151.67
54 ₹ 211.57 ₹ 3,940.10 ₹ 4,151.67
55 ₹ 182.02 ₹ 3,969.65 ₹ 4,151.67
56 ₹ 152.25 ₹ 3,999.43 ₹ 4,151.67
57 ₹ 122.25 ₹ 4,029.42 ₹ 4,151.67
58 ₹ 92.03 ₹ 4,059.64 ₹ 4,151.67
59 ₹ 61.58 ₹ 4,090.09 ₹ 4,151.67
60 ₹ 30.91 ₹ 4,120.77 ₹ 4,151.67
₹ 49,100.26 ₹ 200,000.00 ₹ 249,100.26
 Discount Rate
Years 9%
(0:Initital Discounted In NPV() function, the first cash flow is treated as
Investment) Cash Flows the first year's and not 0th year's investment
0 -40,000 1 -40,000
1 8,000 7339.45 2 8,000
2 9,200 7743.46 3 9,200
3 10,000 7721.83 4 10,000
4 12,000 8501.10 5 12,000
5 14,500 9424.01 6 14,500
40729.85 ₹ 1,779.69

To compare between two projects

NPV() ====> 729.85 sum of sll cash flow uneven = NPV

The net present value of a series of cash flow is the value

that a future stream of cash represents in terms of cash today, given
the fact that future cash can be invested to earn the rate percentage.

1. If NPV is less than 0, that means the investment would not add value to the firm and the project should be r
2. If NPV is greater than 0, that means the investment would add value to the firm and the project can be acce
3. If NPV is equal to 0, that means the investment would neither gain nor lose value for the firm and the proje

If the payment occurs at the beginning of the first period, you don't include the initial cost as one of the value

If the cash flows are distributed evenly through the investment, the NPV and XNPV functions return very close figur

-40,000 1-Sep-07 1-Jan-07

8,000 1-Jan-08 1-Jan-08

9,200 1-Mar-08 1-Jan-09

10,000 30-Oct-08 1-Jan-10

12,000 15-Feb-09 1-Jan-11

14,500 1-Apr-09 1-Jan-12 1914.7848325

XNPV() ====> 9354.02 XIRR()===> 32%

Excel XNPV Function
XNPV function, which is an Excel function that calculates net present value of a stream of net cash flows of an investment give

The standard Excel NPV function calculates net present value under the assumption that cash flows are equidistant i.e. there i

XNPV is a sister funciton of XIRR.

Syntax
XNPV syntax is:

XPNV(rate, values, dates)

Rate refers to the cost of capital at which the cash flows are discounted to t=0. Values argument refers to the stream of net ca

The following screenshot illustrates use of XNPV function:

Excel works out the number of years between two cash flows based on a 365-days year.

XNPV function assumes the first cash flow to occur at t=0 so it doesn’t discount the first cash flow. Unlike NPV function, we mu

In case of NPV function, we include only the future cash flows in the values argument and then manually subtracted the initial

At Row 9, we have manually calculated the number of years each cash flow takes with reference to first date and calculated th
the first cash flow is treated as
nd not 0th year's investment
-36697.24771 1 -40,000 9.63%
6733.4399461 2 8,000 Initial investment is not included
7104.0880166 3 9,200
7084.2521107 4 10,000
7799.1766356 5 12,000
8645.8762397 6 14,500
669.58524225

IRR()_==> 9.6345%

The internal rate of return is the interest rate received for an investment
consisting of payments (negative values) and income (positive values)
that occur at regular periods.

e firm and the project should be rejected.

e firm and the project can be accepted.
e value for the firm and the project would add no monetary value.

he initial cost as one of the values.

PV functions return very close figures:

($10,000) 1/1/2008
$2,750 3/1/2008
$4,250 10/30/2008
$3,250 2/15/2009
$2,750 4/1/2009
2086.64760203154
of net cash flows of an investment given a discount rate and a schedule of dates on which the cash flows occur.

t cash flows are equidistant i.e. there is equal duration between each cash flow and that they occur at the end of each period. While this as

rgument refers to the stream of net cash flows of an investment or project under consideration and dates argument refers to the array of da

cash flow. Unlike NPV function, we must include the initial investment under the values argument in the XNPV function and hence not subtr

nd then manually subtracted the initial investment because including the initial investment within the function would have discounted the initi

eference to first date and calculated the resulting present value of each cash flow at 10% discount rate per annum at Row 8.
 9%

120000
145000
160000
190000
210000
$626,771.08

Determining the value of a project is challenging because there are different ways to measure

For example, if a retail clothing business wants to purchase an existing store, it would first est
e end of each period. While this assumption is a useful simplification, if you want to calculate net present value based on the exact dates on

s argument refers to the array of dates on which the cash flows occur.

XNPV function and hence not subtract it manually.

ion would have discounted the initial investment too. In case of XNPV, since Excel assumes the first date with negative cash flow to be time

er annum at Row 8.
are different ways to measure the value of future cash flows. Because of the time value of money, a dollar earned in the future won’t be wo

existing store, it would first estimate the future cash flows that store would generate, and then discount those cash flows into one lump-sum
e based on the exact dates on which cash flows are received, you must use XNPV function.

h negative cash flow to be time 0, it doesn’t discount the first cash flow and calculates the number of years with reference to the first date i.e
arned in the future won’t be worth as much as one earned today. The discount rate in the NPV formula is a way to account for this. Compan

cash flows into one lump-sum present value amount of, say $565,000. If the owner of the store was willing to sell his business for less than
ith reference to the first date i.e. the date of initial investment.
ay to account for this. Companies have different ways of identifying the discount rate, although a common method is using the expected ret

o sell his business for less than $565,000, the purchasing company would likely accept the offer as it presents a positive NPV investment. C
ethod is using the expected return of other investment choices with a similar level of risk.

s a positive NPV investment. Conversely, if the owner would not sell for less than $565,000, the purchaser would not buy the store, as the in
ould not buy the store, as the investment would present a negative NPV at that time and would, therefore, reduce the overall value of the clo
uce the overall value of the clothing company.
Operation of new A firm is considering whether or not to invest in a new van and driver to replace its current
vehicle Value cash outflows and inflows are shown in the range B2:B12 and a rate of 5% is used as a d
.could sit in the bank earning interest
Cost of new van 14,500
Fuel 1,600 It is considered that a new van with advertising painted on the side will raise the profile of
Maintenance variable .sales by 125 each year - each sale making a profit of $5
Depreciation n/a The project is planned for a 6 year period, at the end of which the van will be sold for an e
.the new van will be immediate in terms of the cash flow
Driver 16,200
New sales The straight forward cash flow shows that the project will generate additional income of $2
(deliveries) 125 however adjusts this cash flow by the discount rate (5%) and shows that the return is in fa
would be better off with its existing arrangements and not buying a van. Alternatively the m
Courier charge per .alternative project
delivery 16
The internal rate of return (cell E25) indicates the discount rate which is necessary for a N
Number of deliveries 1,250 .was replaced with a value of 4.18% the NPV would be very close to zero
Final sale of vehicle 2,300
Profit on each sale 5
Interest rate 5%

New
Expense Income Sales
Fixed Courier Sale of
(Driver+Fuel) Maint Total (1250*16) (125*5) Van Total
year 0 14,500 14,500
year 1 17,800 200 18,000 20,000 625 20,625
year 2 17,800 250 18,050 20,000 625 20,625
year 3 17,800 300 18,100 20,000 625 20,625
year 4 17,800 400 18,200 20,000 625 20,625
year 5 17,800 550 18,350 20,000 625 20,625
year 6 17,800 700 18,500 20,000 625 2,300 22,925

IRR
NPV of Cashflow @ 5% ==>

NPV adjusted to initial cash outflow

What is the IRR?

 and driver to replace its current use of a courier company. The main
and a rate of 5% is used as a discount rate since otherwise the money

the side will raise the profile of the company and therefore increase

hich the van will be sold for an estimated price of $2,300. The outlay on

enerate additional income of $2,350. The net present value (cell C25)
nd shows that the return is in fact negative. In other words the business
buying a van. Alternatively the money could be invested in a better

rate which is necessary for a NPV of 0 (i.e. breakeven). If the 5% value

ry close to zero

Cash
Flow
-14,500
2,625
2,575
2,525
2,425
2,275
4,425
2,350

14,096
Operation of new A firm is considering whether or not to invest in a new van and driver to replace its cu
vehicle Value cash outflows and inflows are shown in the range B2:B12 and a rate of 5% is used
Cost of new van 14,500 .could sit in the bank earning interest
Fuel 1,600
It is considered that a new van with advertising painted on the side will raise the prof
Maintenance variable .sales by 125 each year - each sale making a profit of $5
Depreciation n/a The project is planned for a 6 year period, at the end of which the van will be sold fo
Driver 16,200 .the new van will be immediate in terms of the cash flow
New sales The straight forward cash flow shows that the project will generate additional income
(deliveries) 125 however adjusts this cash flow by the discount rate (5%) and shows that the return is
Courier charge per would be better off with its existing arrangements and not buying a van. Alternatively
delivery 16 .alternative project
Number of The internal rate of return (cell E25) indicates the discount rate which is necessary fo
deliveries 1,250 .was replaced with a value of 4.18% the NPV would be very close to zero

Final sale of vehicle 2,300

Profit on each sale 5
Interest rate 5% 17800 20000 625

Expense Income
New Sale of
Fixed Maint Total Courier Sales Van Total
year 0 14,500 14,500
year 1 17,800 200 18,000 20,000 625 20,625
year 2 17,800 250 18,050 20,000 625 20,625
year 3 17,800 300 18,100 20,000 625 20,625
year 4 17,800 400 18,200 20,000 625 20,625
year 5 17,800 550 18,350 20,000 625 20,625
year 6 17,800 700 18,500 20,000 625 2,300 22,925

NPV -403.63 IRR 4.18%

14096.3695
4.18%
-403.6304965
ew van and driver to replace its current use of a courier company. The main
2:B12 and a rate of 5% is used as a discount rate since otherwise the money

nted on the side will raise the profile of the company and therefore increase
of $5
d of which the van will be sold for an estimated price of $2,300. The outlay on
flow

ct will generate additional income of $2,350. The net present value (cell C25)
(5%) and shows that the return is in fact negative. In other words the business
nd not buying a van. Alternatively the money could be invested in a better

scount rate which is necessary for a NPV of 0 (i.e. breakeven). If the 5% value
d be very close to zero

Cash
Flow
-14,500
2,625
2,575
2,525
2,425
2,275
4,425
2,350