Basic Financial Calculations MGT 4850 Spring 2008 University of Lethbridge.

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Presentation transcript:

Basic Financial Calculations MGT 4850 Spring 2008 University of Lethbridge

Topics Net Present Value Internal Rate of Return Future Value Pension and accumulation problem Continuously Compounded Interest

PV and NPV Discount rate10% Present value$379.08<-- =NPV(B2,B7:B11) Cash Yearflow

Exact NPV problem in Excel Discount rate10% Net present value-20.92<-- =G7+NPV(G2,G8:G12) Cash Yearflow

IRR 7.931%<-- =IRR(B19:B24) NPV For discount rate 10% Cash Yearflow

Loan amortization

Loan amortization 2

1 step calculate IRR

Multiple Internal Rates of Return Discount rate6% NPV-3.99<-- =NPV(B3,B9:B13)+B8 Cash Yearflow

Multiple Internal Rates of Return

Table Highlight the table area Activate the command Data/Table

Bond Cash Flows

Loan Amortzation

Future Value Problems

FV

Annuity problems

Compounding periods Continuous compounding

Continuous discounting

Continuous Return

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