
Determining the amount to invest
To determine how much to invest, there are various factors that
need to be taken into account. First of all, you need to know if the
cost of the investment will be covered by its yearly return. You also
need to know the length of the investment and the interest rate. All
this information can be compared by using the PV formula.
4
To determine the cost of an investment:
1. Using the data shown in Figure 14-39, select cell C11.
2. Type the formula =-PV(C9,C8,C7).
3. Press <Enter>.
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Chapter 14
Figure 14-39