D076 Time Value of Money Variables in Excel

D076 Time Value of Money Variables in
Excel
=NPV(rate,value1,[value2],...) - ✔✔✔Returns the net present value of a series of future payments with
a given rate



fv - ✔✔✔Future value, or the cash balance you want to attain after the last payment is made



IRR(values,[guess]) - ✔✔✔Returns the internal rate of return of a series of future payments



nper - ✔✔✔Number of payment periods in an annuity



pmt - ✔✔✔Payment made each period



pv - ✔✔✔Present value, or the lump-sum amount that a series of future payments is worth right now



rate - ✔✔✔Interest rate per period



type - ✔✔✔Type of annuity—0 indicates an ordinary annuity; 1 indicates an annuity due. The default is
ordinary annuity if you do not enter 0 or 1.



value1,[value2],... - ✔✔✔value1 is the given first payment one period from today; value2 is the second
payment one period after value1. Each payment must be equally spaced in time and occur at the end of
each period. You can separate those payments with commas and enter them in order, or input each
period's payment next to one another in a row and highlight them together



values - ✔✔✔An array or reference to cells that contain numbers for which you want to calculate the
internal rate of return