Excel2007金融建模_Part1 Time Value of Money
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PART 1 TIME VALUE OF MONEY (1)
Chapter 1 Single Cash Flow (1)
1.1 Present Value (1)
1.2 Future Value (2)
Problems (3)
Chapter 2 Annuity (4)
2.1 Present Value (4)
2.2 Future Value (5)
2.3 System of Four Annuity Variables (6)
Problems (8)
Chapter 3 NPV Using Constant Discounting (9)
3.1 Nominal Rate (9)
3.2 Real Rate (10)
Problems (10)
Chapter 4 NPV Using General Discounting (12)
4.1 Nominal Rate (12)
4.2 Real Rate (14)
Problems (16)
Chapter 5 Loan Amortization (17)
5.1 Basics (17)
5.2 Sensitivity Analysis (18)
Problems (20)
CHAPTER 1 Single Cash Flow 1
PART 1 TIME VALUE OF MONEY Chapter 1 Single Cash Flow
1.1 Present Value
Problem. A single cash flow of $1,000.00 will be received in 5 periods. For this
cash flow, the appropriate discount rate / period is 6.0%. What is the present
value of this single cash flow?
Solution Strategy. We will calculate the present value of this single cash flow in
three equivalent ways. First, we will calculate the present value using a time line,
where each column corresponds to a period of calendar time. Second, we use a
formula for the present value. Third, we use Excel’s PV function for the present
value.
2 PART 1 Time Value of Money
FIGURE 1.1 Excel Model for Single Cash Flow - Present Value.
The Present Value of this Single Cash Flow is $747.26. Notice you get the same
answer all three ways: using the time line, using the formula, or using the PV
function!
1.2 Future Value
Problem. A single cash flow of $747.26 is available now (in period 0). For this
cash flow, the appropriate discount rate / period is 6.0%. What is the period 5
future value of this single cash flow?
Solution Strategy. We will calculate the future value of the single cash flow in
three equivalent ways. First, we will calculate the future value using a time line,
where each column corresponds to a period of calendar time. Second, we use a
formula for the future value. Third, we use Excel’s FV function for the future
value.
CHAPTER 1 Single Cash Flow 3 FIGURE 1.2 Excel Model for Single Cash Flow - Future Value.
The Future Value of this Single Cash Flow is $1,000.00. Notice you get the same
answer all three ways: using the time line, using the formula, or using the FV
function!
Comparing Present Value and Future Value, we see that they are opposite
operations. That is, one operation "undoes" the other. The Present Value of
$1,000.00 in period 5 is $747.26 in period 0. The Future Value of $747.26 in
period 0 is $1,000.00 in period 5.
Problems
1. A single cash flow of $1,673.48 will be received in 4 periods. For this cash
flow, the appropriate discount rate / period is 7.8%. What is the present value
of this single cash flow?
2. A single cash flow of $932.47 is available now (in period 0). For this cash
flow, the appropriate discount rate / period is 3.9%. What is the period 4
future value of this single cash flow?