How do you do uneven cash flows in financial solver

[Vincent Douglass]

How do you do uneven cash flows using financial solver?

[diffeq]

To my knowledge, you'd need to set up a spreadsheet to do this, but you could call TVM functions from within the spreadsheet formulas.

[Don]

Uneven cash flows are handled with the net present value, npv(), function. The arguements are npv(interest rate, CF0, CFList [, CFFreq]). For your problem you need to compute the npv of the cash flows and then compute the future value. This is handled with the function tmvFV() function. The arguements are tvmFV(N, I%, PV, PMT [,PpY] [,CpY] [,PmtAt]).

For npv() the interest rate is entered as a %, CF0 is the cash flow at time 0; in this case it is zero. The rest of the cash flows are entered in a list. Thus,

npv(4, 0, {14000, 20000, 30000, 0, 0, 0, 130000}).

Since all 3 years of 0 CF are entered, you do not have to put in the CFFreq list. Once you have computed the net present value use the tvmFV() function.

tvmFV(7, 4, PV, 0) will give you the future value, where PV is the npv you just computed. The PpY, CpY and PmtAt do not have to be entered in this case; they default to 1.