Present Value
• pv(rate, nper, pmt, [[fv], [type]])—Returns the present value of an investment or loan based on periodic, constant payments over a given number of compounding periods nper using a fixed interest rate and a specified payment pmt.
• npv(rate, v)—Returns the net present value of an investment given a discount rate and a series of v cash flows occurring at regular intervals.
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• npv assumes that the payment is made at the end of the period.
• The npv investment begins one period before the date of the first cash flow and ends with the last cash flow in the list.
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Arguments
• rate is the real, positive, scalar fixed interest rate per period. Typically, 0 ≤ rate < 1.
• nper is the positive integer number of compounding periods.
• pmt is the real payment made each period. It usually includes principal and interest but no other taxes and fees.
• fv (optional) is the future value: a cash balance you want to attain after the last payment is made. If omitted, fv = 0.
• type (optional) is 0 for a payment made at the end of the period or 1 for the beginning. If omitted, type = 0.
• v is a vector of cash flows assigned at regular intervals. Payments are entered as negative numbers and income as positive numbers.