Question: Please help show how to use Excel formulas for these: a. What is the present value of your windfall? b. What is the future value
Please help show how to use Excel formulas for these:
| a. | What is the present value of your windfall? | ||||||
| b. | What is the future value of your windfall in three years (on the date of the last payment)? | ||||||
| D | E | F | |||||
| Interest rate | 3.50% | ||||||
| Year | 1 | 2 | 3 | ||||
| 11 | Cash flow | $10,000 | $20,000 | $30,000 | |||
| a. | What is the present value of your windfall? | ||||||
| Present value | |||||||
| b. | What is the future value of your windfall in three years (on the date of the last payment)? | ||||||
| Future value | |||||||
| Requirements | |||||||
| 1. | Start Excel completed. | ||||||
| 2. | In cell D15, by using cell references and the function NPV, calculate the present value of the stream of cash flows (1 pt.). | ||||||
| 3. | In cell D19, by using cell reference and the function FV, calculate the future value of the present value (1 pt.). | ||||||
| Note: The future value should be entered as a positive value. Use cell reference to the present value of withdrawal from Step 2 in your calculations. | |||||||
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