From the course: Google Sheets: Advanced Formulas and Functions
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Calculate the present value of an investment - Google Sheets Tutorial
From the course: Google Sheets: Advanced Formulas and Functions
Calculate the present value of an investment
- [Instructor] Calculating the present value of an investment enables you to answer this question. How much is a proposed investment worth in today's dollars? You can answer that question using the PV, or present value, function. When you calculate present value, you need to know several different pieces of information. The first is the discount rate. If you're not familiar with the discount rate, it is the amount that you expect to earn risk free or nearly risk free from other investments. For example, you might have a product that you sell that has given you 6% profit for the last 10 years and you don't see any reason that will change. You might also have some very low-risk investments through government bonds and so on, but remember that there is a very strong distinction between very low risk and no risk. For example, a US treasury bill or a treasury bond is considered to be very low risk because the United States has never defaulted on its debt obligations. On the other hand…
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Determine loan payments2m 34s
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Determine the principal and interest components of loan payments4m 21s
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Calculate cumulative principal and interest paid4m 39s
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Calculate the present value of an investment3m 32s
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Calculate the future value of an investment3m
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Calculate the effect of interest4m 1s
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Calculate the incremental effect of inflation4m 17s
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Calculate the net present value (NPV) of an investment3m 57s
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Calculate the internal rate of return (IRR) of an investment2m 57s
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