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Expand the fictional annual schedule
| Period | Amount |
|---|---|
| 0 | -1000 |
| 1 | 200 |
| 2 | 200 |
| 3 | 200 |
| 4 | 500 |
Store the initial flow and repeated groups
The three consecutive 200 receipts occupy periods one, two and three. The following 500 receipt belongs to period four. Grouping the equal receipts preserves these dates when the frequency is entered correctly.
- Open and clear the Cash Flow worksheetCF2ndCLR WORK
The previous cash-flow entries are cleared.
- Enter the initial outflow1000+/−ENTER
CF0 is −1,000.
- Enter the first group and its repeat count↓200ENTER↓3ENTER
C01 is 200 and F01 is three consecutive occurrences.
- Enter the following single receipt↓500ENTER↓1ENTER
C02 is 500 and F02 is one occurrence.
- Calculate at ten percent per intervalNPV10ENTER↓CPT
The mathematical NPV is -161.122874.
Keep frequency and rate units separate
F01 = 3 counts three consecutive entries of this amount. It does not set a quarterly, monthly or annual discount convention. Here one interval is one year and the NPV rate I = 10 means 10% for that interval.
Reconstruct the expanded schedule before accepting the result
If F01 were one rather than three, 500 would move to period two and two 200 receipts would disappear. Scroll through amounts and their F fields together. An entry list of distinct amounts alone cannot reconstruct the intended dates.