Present value

The present value finds the amount that needs to be invested at a given rate and amount of time in order to have a future return.

The Chief Investment Officer also wants us to run a benchmark test using present value. If the total investment in West Ridge North is less than the present value amount, we have made a good investment. That's because we would need to invest more at 20.00% to have the same return as West Ridge North.

If you have lost progress, close any open workbooks and load 3_2_future_value.xlsx from the Exercises folder.