Calculate the future value the net cash flow using the formula excel
$10,421
$14,324
| Years | Cash Inflow | Cash Outflow | Net Cash Flow | FV |
|---|---|---|---|---|
| 0 | 8,250 | -1,950 | 6,300 | 6,300.00 |
| 1 | 3,750 | -7,250 | -3,500 | -3,217.19 |
| 2 | 1,250 | 0 | 1,250 | 1,013.17 |
| 3 | 0 | -3,150 | -3,150 | -2,183.42 |
| 4 | 0 | -4,400 | -4,400 | -3,323.00 |
| 5 | 3,750 | -5,150 | -1,400 | -1,046.18 |
| 6 | 10,300 | -650 | 9,650 | 6,557.07 |
| 7 | 0 | -1,950 | -1,950 | -1,204.61 |
| 8 | 7,340 | -3,230 | 4,110 | 2,219.08 |
| 9 | 0 | 0 | 0 | 0 |
| 10 | 1,250 | -4,325 | -3,075 | -1,662.12 |
| 11 | 6,100 | -1,950 | 4,150 | 2,323.15 |
| 12 | 0 | -5,350 | -5,350 | -2,829.67 |
| 13 | 16,530 | -4,400 | 12,130 | 6,146.53 |
| 14 | 0 | -3,650 | -3,650 | -1,949.74 |
| 15 | 0 | -6,450 | -6,450 | -3,101.83 |
| Total | 58,820 | -61,755 | -2,935 | 5,668.96 |
Instruction:
To solve this problem in Excel, I use the following steps:
In the next column, calculate the future value (FV) of the net cash flow using the FV formula in Excel. Label this column "FV."
In the first row of the "FV" column, enter the following formula:
In the last row of the "FV" column, use the SUM function to calculate the total future value at the end of 15 years. Label this cell "Ending Balance."
For example, the formula would be: =SUM(F2:F16)
