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Finding The Present Value of Multiple Cash Flows Using A Spreadsheet Time Until CF Cash Flow Present Value Formula in Col C

This document shows how to calculate the present value of multiple cash flows using a spreadsheet. It lists cash flows occurring at times 0, 1, and 2 years, with values of $8,000, $4,000, and $4,000. The present value of each cash flow is calculated in column C using the PV function, referencing the 8% discount rate in cell B10. The present values are summed at the bottom to get the total present value of $15,133.06. An alternative formula is also shown in column D.

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Ives Lee
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67 views2 pages

Finding The Present Value of Multiple Cash Flows Using A Spreadsheet Time Until CF Cash Flow Present Value Formula in Col C

This document shows how to calculate the present value of multiple cash flows using a spreadsheet. It lists cash flows occurring at times 0, 1, and 2 years, with values of $8,000, $4,000, and $4,000. The present value of each cash flow is calculated in column C using the PV function, referencing the 8% discount rate in cell B10. The present values are summed at the bottom to get the total present value of $15,133.06. An alternative formula is also shown in column D.

Uploaded by

Ives Lee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Finding the present value of multiple cash flows using a spreadsheet

Time until CF Cash flow Present value Formula in Col C


0 8000 $8,000.00 =PV($B$10, A4,0,-B4)
1 4000 $3,703.70 =PV($B$10, A5,0,-B5)
2 4000 $3,429.36 =PV($B$10, A6,0,-B6)

SUM: $15,133.06 =SUM(C4:C6)

Discount rate: 0.08

Notice that the time until each payment is found in column A.


Once we enter the formula for present value in cell C4, we can copy it to cells C5 and C6.
The present value for other interest rates can be found by changing the entry in cell B10.
Alternative
formula for Col C
=B4/(1 + $B$10)^A4
=B5/(1 + $B$10)^A5
=B6/(1 + $B$10)^A6

=SUM(D4:D6)

t to cells C5 and C6.


he entry in cell B10.

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