Discounted Cash Flow, MYSYS function DCF, and Spred Sheet functions NPV
Cash flow is discounted by multiplying the amount
at the end of each period by the present value factor (1+i)-n.
- i is the discount rate from time 0 to the time of the
- n is the number of periods from time 0 to the time of
- Each of these transforms the value at time n to the
present value at time 0.
- The present values can then be summed to give the discounted
value of the series.
- Note that the series can be represented as a polynomial.
The function DCF is an APL statement of the polynomial approach.
- The Future Value of the series is given by (1+i)n,
i.e. nth instead of the -nth power.
DCF is available in APL ws. TV2. DCF is
similar in function to NPV available in Lotus 123, EXCEL, etc.
End to date, ams 990712