20. Building Discount Formulas
IN THIS CHAPTER
Calculating the Payback Period
Calculating the Internal Rate of Return
In Chapter 18, “Building Investment Formulas,” you saw that investment calculations largely use the same time-value-of-money concepts as the loan calculations that you learned about in Chapter 17, “Building Loan Formulas.” The difference is the direction of the cash flows. For example, the present value of a loan is a positive cash flow because the money comes to you; the present value of an investment is a negative cash flow because the money goes out to the investment.
Discounting also fits into the time-value-of-money scheme, and you can see its relation to present ...
Get Formulas and Functions with Microsoft® Excel 2003 now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
