nper = the number of periods. Here it is 20 years. pmt = this is the payment or outgoing cash flows. Here it is $10,000. One thing to note is that you should enter your payment as negative since it is outgoing cash flow. It gives you a positive present value. If you don’t, ...
PV can be calculated in Excel with the formula =PV(rate, nper, pmt, [fv], [type]). If FV is omitted, PMT must be included, or vice versa, but both can also be included. Net present value (NPV) is different from PV, as it takes into account the initial investment amount. Formu...
NPER = C6 = 60: for 5 years 5*12=60 PV= C4 = 2000000: the present value is the total loan amount Read More: How to Do Sensitivity Analysis in Excel Step 2 – Create the First Scenario Select the cells that affect the output EMI. We selected the cell of range C4:C7. Go to Dat...
7.What is true when you choose not to sell an asset? 1. You are willing to buy it at todays market price 2. NPV > 0 where, NPV=P-V 3. All are true 4. You believe its value is greater than todays market price 8.It is most proper...