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Blitzkrieg
4/6/2006, 04:35 PM
I have a purchase price, I show as a negative number. I show a periodical payment received as a cash flow, then I have the sale price 16 months later.

I can set this up on a T-bar and calculate it, but I want a formula in excel where I can just plug in the numbers. What do I use?
1stTimeCaller
4/6/2006, 04:40 PM
an accountant?
Hamhock
4/6/2006, 04:41 PM
present
Blitzkrieg
4/6/2006, 04:57 PM
NPV wants a rate, and that's what I'm looking for.

I'd think IRR would be better, because it has a reversion or sale price involved, but I can't get that to work.
BeetDigger
4/6/2006, 05:00 PM
I have a purchase price, I show as a negative number. I show a periodical payment received as a cash flow, then I have the sale price 16 months later.

I can set this up on a T-bar and calculate it, but I want a formula in excel where I can just plug in the numbers. What do I use?


I believe that IRR will work.

List the numbers and let me try it.
Blitzkrieg
4/6/2006, 05:35 PM
the purchase price was (185000), 200 monthly cash flow for 16 months, sale at the end of month 16 was $215,000
BeetDigger
4/6/2006, 05:56 PM
the purchase price was (185000), 200 monthly cash flow for 16 months, sale at the end of month 16 was $215,000


I get the answer to be 13.2% for the annual IRR

To get there, put your cashflows into a matrix and do a straight forward IRR on it. Then take that result and convert to an annual compoud rate: (1+IRR)^12 - 1.
OUinFLA
4/6/2006, 09:02 PM
geeks
Hamhock
4/6/2006, 09:25 PM
I get the answer to be 13.2% for the annual IRR

To get there, put your cashflows into a matrix and do a straight forward IRR on it. Then take that result and convert to an annual compoud rate: (1+IRR)^12 - 1.


You're not even going to admit that 1TC e-mailed you the answer?
BeetDigger
4/7/2006, 08:41 AM
You're not even going to admit that 1TC e-mailed you the answer?


Heh.

No, I do this stuff for a living.
Blitzkrieg
4/7/2006, 10:31 AM
cool