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What is the excel formula to calculate the present value at a 10% annual discount rate...

What is the excel formula to calculate the present value at a 10% annual discount rate for a cash flow stream of $1,000, $2,000, $3,000 and $4,000 in years 1, 2, 3 and 4, respectively.

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Answer #1

The excel formula to calculate the present value at 10% annual discount for a cash flow stream of $1000, $2000, $3,000 and $4,000 in years 1,2,3 and 4 respectively is :

Net Present Value = (Annual required return, Total of cash flow of streams)

For example, In this case the derivation of the formula will be :

    NPV = (10,1000+2000+3000+4000)

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