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Mark considers the purchase of a sports store for $ 100,000 and expects to receive the following income over the next six years of the business: $ 25,000, $ 40,000, $ 42,000, $ 44,000, $ 48,000, $ 50,000. The interest rate is 8% per year $300 payday loan. In cells A1 through A7, enter −100,000, followed by the six annual income. Present Value: = NPV (8%, A2: A7) + A1 The value in cell A1 is already a present value. Any year with zero cash flow must have a 0 entry to ensure a correct result.

PAYMENT (payments) Calculates equivalent periodic amounts based on present value and or future value with a constant interest rate. = PAY (rate, nper, vp, vf, type) rate nper vp vf type

Interest rate per compounding period. Total number of periods. Present value. Future value. (optional entry) Enter 0 for payments due at the end of the compounding period, and 1 if the payment is due at the beginning of that period. If this entry is omitted, a value of 0 is assumed.

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