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Here's a tricky one...
Using this equation:
RangeSum(NPV(Discount, -Payments + Income, Investment)
Say I had:
RangSum ( NPV ( 0.08, ( -X + 140000 ) , 50000 ) = 85000
where the payments and income were generated over 12 years......
Can I solve this equation for X ?
I would prefer to solve it in the script using inputs from a single line table like this.
Load * Inline
[
NPV,Discount,Income,LifeOfLoan
85000,0.08,140000,12
];
Any recommendations?
Mike
Hi Can you attac the sample qvw with th data. Thank you.
Hi Mike,
Not sure I understand your purpose since QV takes only two parameters for NPV - discount rate and cash flow for all the preriods.
The simple present value is calculated as: Cash Flow / ((1 + Discount Rate) ^ No. of periods), so if you are looking for cash flow you just need to multiply your NPV by ((1 + Discount Rate) ^ No. of periods).
Best regards,
Maxim
Thanks for the reply Maxim,
You have me thinking that I may have overthought this one.
The thing is I know the incoming part of the cash flow (Benefits) but not the payments. So according to your rationale I thought that would be:
Benefits - Payments = NPV * ((1 + Discount Rate) ^ No. of periods)
Therefore....
Payments = NPV * ((1 + Discount Rate) ^ No. of periods) + Benefits
Using this Im getting a payments figure far in excess of my benefits so Im not sure this is correct. Note that I am first creating a table that discount the year on year benefits and summing them to get the properly discounted benefit value. Your logic makes sense, but can you see where I might go wrong with my approach?
Thanks Mike