1. Tour of PV
Now, as you can see, we have the Excel template here open that
we've provided. If you didn't get a chance to download it,
definitely hop back to the last lesson and make sure that you have
it downloaded, and open it up. So what we're wanting you to do
here is have a go at filling in these cells, which are shaded
in gray. So all of these cells across here, and then need cell down
in here. So let's take a look at these two footnotes here,
they come up over on this side. So first of all,
we don't want you to use either the
NPV or XNPV functions, and also we want to assume year zero is
the current date for the NPV calculation. So what we basically want you
to do is manually discount the cash flow. So this cash flow here,
since it's in year zero should not be discounted at all,
this one is gonna be discounted by one year, two years,
et cetera, all the way along. Then what we do, obviously over here,
I want you to add them up to get the net present value.
So what you can watch for, which might be fun as well,
is over here, there's a little checkbox which will appear if you get
that line correct, and another check box down here. Up here,
you'll see 100% as soon as you're done this whole schedule.
So good luck with it and have fun. We'll see you soon.
2. Let's practice!