Microsoft Office Tutorials and References

In Depth Information

**APPENDIX 1 - ALPHABETICAL FUNCTION REFERENCE**

NPV(rate,value1,value2, ...) [Category: Financial]

Calculates the net present value of an investment by using a discount rate and

a series of future payments (negative values) and income (positive values).

Guru Tip: Unlike PV, the payments don’t have to be identical with NPV. In the

image below, you buy a business for $450,000 as represented by cell B4. Future

annual cash ﬂ ows are shown in B5:B9. In the opinion of many, Excel doesn’t

calculate NPV correctly. Rather than including the cost of the business, run NPV

using the discount rate shown in B3 and then the cash ﬂ ows in B5:B9. Excel

will report that the NPV is 716,329 which is not exactly right. To get what most

people would call Net Present Value, you have to add in the initial cash outlay.

Adding negative 450,000 to 716329 gives you the true Net Present Value of

266,329. The discount rate is the cost of capital. Think of it as the interest rate

you could get with that money if you did not invest it in this business.

OCT2BIN(number,places) [Category: Engineering]*

Converts an octal number to binary.

OCT2DEC(number) [Category: Engineering]*

Converts an octal number to decimal.

OCT2HEX(number,places) [Category: Engineering]

Converts an octal number to hexadecimal.

ODD(number) [Category: Math]

Returns number rounded up to the nearest odd integer.

ODDFPRICE(settlement,maturity,issue,ﬁ rst_coupon,rate,yld,redemption,f

requency,basis) [Category: Financial]*

Returns the price per $100 face value of a security having an odd (short or long)

ﬁ rst period.

ODDFYIELD(settlement,maturity,issue,ﬁ rst_coupon,rate,pr,redemption,fr

equency,basis) [Category: Financial]*

Returns the yield of a security that has an odd (short or long) ﬁ rst period.

ODDLPRICE(settlement,maturity,last_interest,rate,yld,redemption,freque

ncy,basis) [Category: Financial]*

Returns the price per $100 face value of a security having an odd (short or long)

last coupon period.

ODDLYIELD(settlement,maturity,last_interest,rate,pr,redemption,frequen

cy,basis) [Category: Financial]*

Returns the yield of a security that has an odd (short or long) last period.