In This Chapter
Determining what an investment is worth
Using different depreciation methods
Evaluating business opportunities
Money makes the world go ’round, so the saying goes. I have a new one: Excel functions make the money go ’round. Excel has functions that let you figure out what an investment will be worth at a future date. We all know it’s a good thing to look for a good interest rate on an investment. With the FV (Future Value) function, you can take this a step further and know how much the investment will be worth down the road.
Have you ever wondered what to do with some extra money? You can put it in the bank, you can pay off a debt, or you can purchase something. Excel helps you figure out the best course of action by using the IRR (Internal Rate of Return) function. The IRR function lets you boil down each option to a single value that you can then use to compare opportunities and select the best one.
For the business set, Excel has a number of functions to help create depreciation schedules. Look no further than the SLN, SYD, DB, and DDB functions for help in this area. Brush up on these, and ...