Long description
| A | B | |
|---|---|---|
| 1 | Present Value of an annuity due. | |
| 2 | Annual annuity payment | 700 dollars |
| 3 | Annual rate of interest | 4 percent |
| 4 | Number of years | 5 |
| 5 | Future value | negative 3,240.93 dollars |
| Entry in Cell B5 is equal to sign PV(B3,B4,B2,0,1). The minus sign appears before the 3,240.93 dollars in B5 because the annuity's present value is a cost and therefore a cash outflow. |
Get Principles of Managerial Finance, 15th Edition 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.
