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Driving me mad

  • 04-09-2012 9:28pm
    #1
    ScissorPaperRock
    Registered Users, Registered Users 2 Posts: 2,708 ✭✭✭


    I'm working with a net present value calculation for a cost benefit analysis.

    Basically I want to determine the value of income necessary to meet a given present value after a given time and at a given rate of discount.

    For example in the formula below, I want to solve for Rt

    9374f414d46f1445ea3b032549393d27.png

    Where NPV(i)=1000, N=10, and i=0.05

    I just don't know how to deal with fact that Rt is being divided by a different value on each instance of t. Any advice would be greatly appreciated. I would like to be able to express it in a way that Excel understands.

    Thanks


Comments

  • #2
    gyraterosboy
    Registered Users, Registered Users 2 Posts: 28 ✭gyraterosboy


    Annunity factor for year 10 at 5% and divide into NPV


  • #3
    gyraterosboy
    Registered Users, Registered Users 2 Posts: 28 ✭gyraterosboy


    If there is a capital cost involved just add to the NPV and divide by the relevant annunity factor


  • #4
    ScissorPaperRock
    Registered Users, Registered Users 2 Posts: 2,708 ✭✭✭ScissorPaperRock


    gyraterosboy wrote: »
    Annunity factor for year 10 at 5% and divide into NPV

    I think I love you.
    gyraterosboy wrote: »
    If there is a capital cost involved just add to the NPV and divide by the relevant annunity factor

    It was just the annuity factor that I needed. I somehow got to this point without being aware of such a thing. I need to read a bit and understand how it's derived, but for now I can finish my analysis so you've been really helpful guys, thanks.


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