INDEX

S.NO. TOPIC LINK

1 PV SINGLE PV SINGLE'!A1
2 FV SINGLE FV SINGLE'!A1
3 PV ANNUITY PV ANNUITY'!A1
4 EMI EMI!A1
5 PV ANNUITY DUE PV ANNUITY DUE'!A1
6 PV PERPETUITY PV PERPETUITY'!A1
7 IPMT IPMT!A1
8 PPMT PPMT!A1
9 DEPRECATION DEPRECATION!A1
10 NPV NPV!A1
11 IRR IRR!A1
12 XNPV XNPV!A1
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PV OF A SINGLE CASH FLOW

Q.1. Simon sells goods of $1500 on a credit toafter three years

opportunity cost is 10% find pv?

PV(RATE,NPER,PMT,FV,TYPE)

RATE= INTEREST
NPER= NO OF YEARS

FV 1500
YEARS 3
RATE 10
PV ₹ 1,126.97
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FV OF A SINGLE CASH FLOW

Q.1. An investor is interested to find out the future value of $5000 invested toaday for 10
years at the rate of interest is 5%?

FV(RATE,NPER,PMT,PV,TYPE)

RATE= INTEREST
NPER= NO OF YEARS

PV 5000
YEARS 10
RATE 5
FV ₹ 8,144.47
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EMI

Q.1. an investor takes a loan of 20,00,000 for 20 years @11% p.a.

calculate the amount of emi?

PMT=(RATE,NPER,PV,FV,TYPE)

PV 2,000,000
FV 0
YEARS 240
RATE% 23/25
PMT ₹ 20,698.24
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PRESENT VALUE OF AN ANNUITY

Q.1. Jack sells goods for which he offers following option of payment:
1. pay 2500 2. pay 900 at the end of first year, second year and 3rd year from now.
the customer having opprtunity cost of 10% has to choose between these options.

PV(RATE,NPER,PMT,FV,TYPE)

FV 0
PMT 900
YEARS 3
RATE 10
PV ₹ 2,238.17
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PRESENT VALUE OF AN ANNUITY DUE

Q.1. A recurring amount of rs 1000 is recievables at the beginning of each four years
starting from now rats of interest is 6%. Find out the present value?

PV:- RETURNS THE PRESENT VALUE OF AN ANNUITY DUE

PV(RATE,NPER,PMT,FV,TYPE)
PV:- PRESENT VALUE OF AN ANNUITY DUE

RATE 6%
PMT 1000
YEAR 3
PV ₹ 2,673.01
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PV OF AN PERPETUITY

Q.1. A bank offers makes an offer to depositwith in its sumof rs 1600 and then returns received in
return of rs 1800 per annum perpetually should be offer be accepted by an investor whose rate of
return is 12%? Will be decision change if its rate of return is 10%?

PV OF THE PERPETUITY= ANNUAL CASH FLOW/r

present value of a perpetuity is equal to the amount of perpetuity divided by the rate of interest.

current deposit 16000

annual return(perpetuity) 1800
rate(%) case 1 0.12
rate(%) case 2 0.10

PV OF CASH FLOWS FOR CASE 1 15000

PV OF CASH FLOWS FOR CASE 2 18000
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CALCULATION OF IPMT

PERIOD 95
PV 2,000,000
FV 0
YEARS 240
RATE 0.92%
IPMT ₹ 15,196.16
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CALCULATION OF PPMT

PERIOD 95
PV 2000000
FV 0
YEARS 240
RATE 0.92%
PPMT $5,447.61
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DOUBLE DECLINING BALANCE
DEP= SLN()
Q.1. Column1 Column2 Column1
OPENING VALUE 25000 OPENING VALU
SCRAP VALUE 0 DEPRECIATION
LIFE 8 ENDING VALUE

STRAIGHT LINE

Column1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

OPENING VALUE 25000 ₹ 21,875.00 ₹ 18,750.00 ₹ 15,625.00 ₹ 12,500.00
DEPRECIATION ₹ 3,125.00 ₹ 3,125.00 ₹ 3,125.00 ₹ 3,125.00 ₹ 3,125.00
ENDING VALUE ₹ 21,875.00 ₹ 18,750.00 ₹ 15,625.00 ₹ 12,500.00 ₹ 9,375.00
UBLE DECLINING BALANCE

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8

25000

DING VALUE

YEAR 6 YEAR 7 YEAR 8

₹ 9,375.00 ₹ 6,250.00 ₹ 3,125.00
₹ 3,125.00 ₹ 3,125.00 ₹ 3,125.00
₹ 6,250.00 ₹ 3,125.00 ₹ 0.00
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Q.1. MACHINE AVALIABLE 170,000

RATE 10%

YEAR CASH FLOWS

0 170,000
1 20,000
2 50,000
3 60,000
4 40,000
5 75,000

NPV 8,472.65772953906
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RATE 9%

S.NO CASH FLOW DATE

1 -20000 1/1/2017
Q.1. 2 5500 3/1/2017
3 8500 10/30/2017
4 6500 2/15/2018
5 5500 4/1/2018

XNPV 4179.003272106
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Q.1. FIRM COSTING 160,000

HURDLE RATE 12%

YEAR CASH FLOWS

0 -160,000.00
1 40,000.00
2 60,000.00
3 50,000.00
4 50,000.00
5 40,000.00

IRR 15%
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S.NO CASH FLOWS DATE

1 -20000 1/1/2017
2 5500 3/1/2017
3 8500 10/30/2017
4 6500 2/15/2018
5 5500 4/1/2018

XIRR 0.374858599901