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Investment and present value

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    Investment and present value

    Hi!
    I have a task, where I have to find the present value of an investment considering the inflation rate and continuously growing (by constant value and by rate) recieved incomes.
    It's pretty complicated to explain, so I attached the task.

    The basic PV function doesn't work here, since the payment isn't constant. I had an idea, that there would be a possible way to insert an additional formula in Pmt field (something that would help with that growth)... but I struggle to find the right one. So I'm really looking for some help
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    Last edited by ivixinja; 05-27-2011 at 09:06 PM.

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    Re: Investment and present value

    What is the income strream? It can't start at $700/mo and increase by $350/mo; that would return $428K.
    Entia non sunt multiplicanda sine necessitate

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    Re: Investment and present value

    Quote Originally Posted by shg View Post
    What is the income strream? It can't start at $700/mo and increase by $350/mo; that would return $428K.
    It is said in the task: You invest in a project 70000; in the first month you recieve 700 and +350 in every sequent month.

    You gave me the point, that it might be impossible to calculate without cash flow... Is it so?
    Last edited by ivixinja; 05-27-2011 at 08:05 PM.

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    Forum Expert shg's Avatar
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    Re: Investment and present value

    Reckon you just make a payment table and use XNPV:

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    Re: Investment and present value

    I would never find that function, so you really saved me I'm ssooooo happy right now!
    THANK YOU so much!!!

    Quote Originally Posted by shg View Post
    Reckon you just make a payment table and use XNPV:

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