1. Equivalence for Repeated Cash Flows Chapter 4: Newnan, Eschenbach, and Lavelle Dr. Hurley’s AGB 555 Course

2. Uniform Series Compound Interest Formula

3. Uniform Series Compound Interest Formula Cont.

4. Arithmetic Gradient

6. Geometric Gradient

7. Excel Spreadsheet Annuity Functions To find present value of an annuity -PV(i,n,A,F,Type) To find a future value of an annuity -FV(i,n,A,P,Type) To find the value of an annuity -PMT(i,n,P,F,Type) To find the number of periods needed for an annuity NPER (i,A,P,F,Type) To find the interest rate related to an annuity RATE(n,A,P,F,Type,guess)

8. Cash Flow Block Functions for Excel Suppose you have irregular payments that cannot be easily annuitized, then Excel has the following two functions: NPV(i,values) where i represents the interest rate and values is a block of cells for the various cash flows This function calculates the net present values of a series of cash flows from year 1 to n IRR(values,guess) where values is a block of cells for the various cash flows and guess is an estimate of what you believe the interest rate to be This function calculates the internal rate of return for cash flows from 0 to n The internal rate of return is the interest rate that cause the NPV function to equal zero