NPV calculations at the end of future years

Do I use the net present value function (PV) to get an answer of (negative)
-37,565 if we have a cash outflow of $50,000 at the end of the 3rd year at a
10% factor?

I am using a text book and chart, but I’d like to be able to use excel to
calculate it. Once again, the text’s answer is (37,565).

Thank you for your help.
--
das

NPV is for a series of payments.

Use

=50000/(1+10%)^3

--
Kind regards,

Niek Otten


"das" <[email protected]> wrote in message news:[email protected]...
> Do I use the net present value function (PV) to get an answer of (negative)
> -37,565 if we have a cash outflow of $50,000 at the end of the 3rd year at a
> 10% factor?
>
> I am using a text book and chart, but I'd like to be able to use excel to
> calculate it. Once again, the text's answer is (37,565).
>
> Thank you for your help.
> --
> das

Yes, use PV: =PV(10%,3,0,50000). The PV function arguments are the periodic
rate, the number of periods, the payment made each period (none, since you
have a single cash outflow), and the future value (50000, since that's the
value at the end).

"das" wrote:

> Do I use the net present value function (PV) to get an answer of (negative)
> -37,565 if we have a cash outflow of $50,000 at the end of the 3rd year at a
> 10% factor?
>
> I am using a text book and chart, but I’d like to be able to use excel to
> calculate it. Once again, the text’s answer is (37,565).
>
> Thank you for your help.
> --
> das