If payments are not equal, the PV function in Excel cannot be used to solve the problem efficiently. However, the NPV function (i.e., net present value) does allow for unequal payments. Example B: ...

The arguments used in this function are the same as described for the FV and PV functions. 16] MIRR, IRR, ACCRINT MIRR stands for modified internal rate of return.

3] NPV. The NPV function returns the net present value of an investment based on a series of periodic cash flows and a discount rate. The formula for the NPV function is NPV(rate, value 1,[value2 ...

The next time you cover this topic, consider teaching students how to calculate the issue price by using the net present value function (NPV) in Excel. Here’s an example: Suppose a company issues a $1 ...