Present value several sums

  • Thread starter Thread starter Mike W.
  • Start date Start date
M

Mike W.

I have a string of 30 numbers. All in a progressive order
that are not the same. Let us say they start on A1 and
stretch to AF30. I want to take the present discounted
value of each of those numbers and add the pdv together
into a single sum on A12. The interest rate I want to
discount to is 15%.

How can I do this simply?

Michael
 
Maybe I don't understand it but wouldn't it be?

=SUM(A1:AF1)*0.85

or if they are 30 numbers

=SUM(A1:AD1)*0.85
 
Peo,

I made a mistake describing my problem.


My problem is:

I have a string of numbers that goes from A10 to AF10
(which is 30 spaces). These numbers represent the Free
Cash flow of an investment project. In other words at the
end of each year, the investment we have yields this left
over cash.

Now then, in accounting and finance, you can discount
cash flows and even compound them. Simply put, this means
as an investor you take the equivalent cash value in
today's dollars if you were able to consistently reinvest
the money (in compounding) or divest (in discounting) at
the same rate of interest. I am trying to use 15% for my
clients since that is what they have been able to invest
at.

Now then, if the sums of money I was a attempting to
compound or discount at were the same amount, it would be
called an annuity. Then one single figure could be used
to discount. If that were the scenario, I could probably
figure out on my own how to do that.

However, since each figure is different, then I would
need to discount each figure individually and then
multiply the figures by the number of periods the
compound (Discounting in this case) and then add them
together. I think that there must be a simple way to use
program calculations in excel to do this. Otherwise, it
will take some time and 31 rows. 30 to calculate and one
to sum the total! I want to have this all wrapped up on
cell #A12.

How do I do this?

This may take someone with some strong financial
knowledge and understanding with regards to excel to do.

Michael
 
If your cash flows are for regular periods, use NPV, as in:

=npv(.15,a10:af10)

If your cash flows are irregular, use XNPV.
 
That works perfrectly

I appreciate it!

Michael

-----Original Message-----
If your cash flows are for regular periods, use NPV, as in:

=npv(.15,a10:af10)

If your cash flows are irregular, use XNPV.

--
Regards,
Fred
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