Example:Present Value of a Lump Sum You have been FV offered S40,000 for PV= your printing (1+i)” business,payable in 40,000 2 years.Given the risk,you require a (1+0.08)2 return of 8%.What is =34293.55281 the present value of ≥$34,293.55 today the offer? 16 THE COURSE OF FINANCE 2017 SPRING STTU
Example: Present Value of a Lump Sum You have been offered $40,000 for your printing business, payable in 2 years. Given the risk, you require a return of 8%. What is the present value of the offer? THE COURSE OF FINANCE 2017 SPRING SJTU 16 $34,293.55 today 34293.55281 (1 0.08) 40,000 (1 ) 2 n i FV PV
Do the calculation by EXCEL Excel Function for FV: FV(rate,nper,pmt,pv) Excel Function for PV: PV(rate,nper,pmt,Fv) THE COURSE OF FINANCE 2017 SPRING STTU 17
Do the calculation by EXCEL Excel Function for FV: = FV(rate,nper,pmt,pv) Excel Function for PV: = PV(rate,nper,pmt,Fv) THE COURSE OF FINANCE 2017 SPRING SJTU 17