Chat with us, powered by LiveChat San Diego State University Lease Amortization Worksheet - STUDENT SOLUTION USA

The net present value of a ten-year payment stream of $10,000 per month at 3% (assume the first payment is 30 days away)

An amortization table of the payment stream showing the allocation of each monthly payment to interest and principal

  1. Make sure the following input variables can be changed:
  2. Monthly payment amount

Interest rate



USING EXCEL TO CALCULATE NPV

  • Things to remember:
  • Excel assumes the first payment is one period away

Formula =NPV(RATE,Cell_Range) =NPV(4%,A1…A12)

If the first payment (Cell A1) is received on day 1, the formula should be: =A1+NPV(4%,A2…A12)

The rate must agree to the period of cash flows. Monthly payments using an annual rate of 4% should be shown as follows:  =NPV((4%/12),A1….A12)

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