NPV formula for constant stream of cash flows

[Jon Galt]

Is there a way to enter an NPV formula for a constant
stream of cash flows over the life of an annuity without
inputting each stream into the formula? That is, is there
a shortcut to determine the NPV of an annuity that pays
$100/year for 8 years at a static hurdle rate?

 

[Ron Rosenfeld]

Is there a way to enter an NPV formula for a constant
stream of cash flows over the life of an annuity without
inputting each stream into the formula? That is, is there
a shortcut to determine the NPV of an annuity that pays
$100/year for 8 years at a static hurdle rate?

You could possibly use the PV formula.


--ron

 

[Norman Harker]

Hi Jon!

To replicate the NPV function return:

=-PV(8%,8,100,0,0)
Returns: 574.66389437253

With flows of 100 in A1:A8 this is the same as the NPV function:

=NPV(8%,A1:A8)
Returns: 574.66389437253

--
Regards
Norman Harker MVP (Excel)
Sydney, Australia
(e-mail address removed)
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