bla76353_IFC.

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Format for Spreadsheet Functions on Excel Relations for Discrete Cash Flows with End-of-Period Compounding
Present worth: Factor Notation Sample Cash Flow
PV(i%,n,A,F) for constant A series Type Find/Given and Formula Relation Diagram
NPV(i%,second_cell:last_cell) first_cell for varying cash flow series
F P (F P,i,n) (1 i)n F P(F P,i,n) F
Future worth:
Compound
FV(i%,n,A,P) for constant A series amount 0 n
Single
Annual worth:
Amount
PMT(i%,n,P,F) for single amounts with no A series P F 1
(P F,i,n) P F(P F,i,n)
Number of periods (years):
Present (1 i) n P
worth
NPER(i%,A,P,F) for constant A series
Rate of return:
P A (1 i) n 1
RATE(n,A,P,F) (P A,i,n) P A(P A,i,n) A A A A
for constant A series Present i(1 i) n
IRR(first_cell:last_cell) for varying cash flow series worth
0
Interest rate:
A P i(1 i) n
EFFECT (r%,m) for nominal r, compounded m times per period (A P,i,n) A P(A P,i,n) 1 2 n1 n
Capital (1 i) n 1
NOMINAL (i%,m) for effective i, compounded m times per year
recovery P
Depreciation: Uniform
SLN(P,S,n) Series
Straight line depreciation for each period
F A (1 i) n 1 F
DDB(P,S,n,t,d) Double declining balance depreciation for period t at rate d (F A,i,n) F A(F A,i,n)
Compound i
DB(P,S,n,t) Declining balance, rate determined by the function amount 0 1 2 n1 n

VDB(P,S,n, start_period, Switch from declining balance to straight line depreciation
A F i
end_period, factor) (A F,i,n) A F(A F,i,n)
VDB(P,0,n,MAX(0,t 1.5), Sinking (1 i) n 1
MACRS depreciation for period t A AA A
MIN(n,t 0.5), factor) fund
Logical IF function:
IF(logical_test,value_if_true,value_if_false) PG G (1 i) n in 1 PG
for logical two-branch operations (P G,i,n) PG G(P G,i,n) AG AG AG AG AG
Present i (12
i) n
Arithmetic worth

Spreadsheet Function to Display a Gradient 0 1 2 3 n
AG G 1 n
Notation for Spreadsheet and Calculator Functions Factors Numerical Value (A G,i,n) AG G(A G,i,n) G 2G
Uniform i (1 i) n 1 (n1) G
Value Sought Spreadsheet Calculator Factor Notation Spreadsheet Function series (Gradient only)
Present worth PV(i%,n,A,F) PV(i,n,A,F) (P/F,i,n) PV(i,n,,1)
1 g n n1
A1 c 1 a b d
A1(1+g)
Future worth FV(i%,n,A,P) FV(i,n,A,P) (F/P,i,n) FV(i,n,,1) Pg A1 and g A (1+g)
1 i A1 1
Annual worth PMT(i%,n,P,F) PMT(i,n,P,F) (A/F,i,n) PMT(i,n,,1) Present g i
Geometric Pg i g
RATE(n,A,P,F) FV(i,n,1) worth 0
Rate of return i(n,A,P,F) (F/A,i,n) Gradient n
A1 g i 1 2 n1 n
Number of years NPER(i%,A,P,F) n(i,A,P,F) (P/A,i,n) PV(i,n,1) 1 i
(A/P,i,n) PMT(i,n,1) Pg
(Gradient and base)

(Note: The PV, FV, and PMT functions on spreadsheets and many calculators change the sense of the sign on the displayed
result. Precede the spreadsheet function with a minus sign to retain the same sign; change the calculators answer to retain the
same sign.)

ISBN:978-0-07-337635-6 Inside Front Cover

Authors: Leland Blank, P.E., Anthony Tarquin, P.E. Color: 1
Title: Basics of Engineering Economy Pages: 4,5