bla76353_IFC.qxd
11/23/12
11:34 AM
Page 4
CONFIRMING PAGES
Format for Spreadsheet Functions on Excel©
Relations for Discrete Cash Flows with End-of-Period Compounding
Present worth:
⫽ PV(i%,n,A,F)
for constant A series
⫽ NPV(i%,second_cell:last_cell) ⫹ first_cell
for varying cash flow series
Type
Future worth:
⫽ FV(i%,n,A,P)
for constant A series
Single
Amount
Annual worth:
⫽ PMT(i%,n,P,F)
for single amounts with no A series
Number of periods (years):
⫽ NPER(i%,A,P,F)
for constant A series
Rate of return:
⫽ RATE(n,A,P,F)
for constant A series
⫽ IRR(first_cell:last_cell)
for varying cash flow series
F P
Compound
amount
P F
Present
worth
⫽ EFFECT (r%,m)
for nominal r, compounded m times per period
⫽ NOMINAL (i%,m)
for effective i, compounded m times per year
Depreciation:
⫽ SLN(P,S,n)
Straight line depreciation for each period
⫽ DDB(P,S,n,t,d)
Double declining balance depreciation for period t at rate d
⫽ DB(P,S,n,t)
Declining balance, rate determined by the function
⫽ VDB(P,S,n, start_period,
end_period, factor)
Switch from declining balance to straight line depreciation
Uniform
Series
MACRS depreciation for period t
Factor Notation
and Formula
(F P,i,n)
i)n
(1
for logical two-branch operations
Notation for Spreadsheet and Calculator Functions
Value Sought
Spreadsheet
Spreadsheet Function to Display a
Factor’s Numerical Value
Calculator
Factor Notation
Spreadsheet Function
Present worth
⫽ PV(i%,n,A,F)
PV(i,n,A,F)
(P/F,i,n)
⫽ ⫺PV(i,n,,1)
Future worth
⫽ FV(i%,n,A,P)
FV(i,n,A,P)
(F/P,i,n)
⫽ ⫺FV(i,n,,1)
Annual worth
⫽ PMT(i%,n,P,F)
PMT(i,n,P,F)
(A/F,i,n)
⫽ ⫺PMT(i,n,,1)
Rate of return
⫽ RATE(n,A,P,F)
i(n,A,P,F)
(F/A,i,n)
⫽ ⫺FV(i,n,1)
Number of years
⫽ NPER(i%,A,P,F)
n(i,A,P,F)
(P/A,i,n)
⫽ ⫺PV(i,n,1)
(A/P,i,n)
⫽ ⫺PMT(i,n,1)
(Note: The PV, FV, and PMT functions on spreadsheets and many calculators change the sense of the sign on the displayed
result. Precede the spreadsheet function with a minus sign to retain the same sign; change the calculator’s answer to retain the
same sign.)
ISBN:978-0-07-337635-6
Authors: Leland Blank, P.E., Anthony Tarquin, P.E.
Title: Basics of Engineering Economy
Inside Front Cover
Color: 1
Pages: 4,5
Arithmetic
Gradient
Geometric
Gradient
F
1
(P F,i,n)
i) n
(1
(1 i) n 1
i(1 i) n
A P
Capital
recovery
(A P,i,n)
i(1 i) n
(1 i) n 1
F A
Compound
amount
(F A,i,n)
A F
Sinking
fund
(A F,i,n)
PG G
Present
worth
(P G,i,n)
AG G
Uniform
series
Pg A1 and g
Present
worth
Sample Cash Flow
Diagram
P(F P,i,n)
F
0
P
F(P F,i,n)
P
A(P A,i,n)
A
n
…
P
A
A…
1
2
0
P(A P,i,n)
A
A
…
n–1 n
P
i) n
i
(1
i
i) n
(1
Logical IF function:
⫽ IF(logical_test,value_if_true,value_if_false)
Relation
(P A,i,n)
P A
Present
worth
Interest rate:
⫽ VDB(P,0,n,MAX(0,t ⫺ 1.5),
MIN(n,t ⫺ 0.5), factor)
Find/Given
in
i) n
1
i
(1
A
1
i (1
2
F
F
A(F A,i,n)
0
i) n
(1
(A G,i,n)
1
n
i) n
1
1
1
2 n–1
…
A
A…A
n
F(A F,i,n)
PG
G(P G,i,n)
AG
G(A G,i,n)
PG
0
A
AG AG AG … AG AG
1
2
G
…
3
…
2G
n
(n–1) G
(Gradient only)
A1 c 1
Pg
A1
n
1
1 g n
b d
1 i
i g
a
i
(Gradient and base)
n–1
g
g
A (1+g)
A1 1 …
i
i
0
Pg
A1(1+g)
…
1
2 n–1 n