|PVCon (NPVDate, DisAER, Start, Finish, AnnualRate, [DayCount], [CashBasis], [DayCountDisc], [PrdsDisc])|
|Present Value of a Con Function|
|This function calculates the Net Present Value of the constant rate Con function, without having to do the individual cell calculations, which are done internally within the function.|
In Projections NPV functions and some of Real Estate Valuation functions there are two sets of DayCount parameters, instead of the usual one:
These functions are essentially combinations of the the underlying projections function (eg PVCon, PVUniSpread) and the discounting function PVT, both of which require DayCount variables for their own different purposes.
A common misconception is to think that whilst the Daycount variables for the cashflows are needed (DayCount/CashBasis), the other, discounting set are superfluous. Whilst you can let them default, in which case the default daycount method is used, you should not forget them because they determine the length of time that the cash flows are to be discounted. Excels NPVX function, for example, uses ACT/365 (with no choice of alternatives) which is really not very suitable for periods of time longer than a year and would lead to errors over long periods. Business Functions gives you the choice of daycount method because it can really make a difference.
Tip: When you have a large number of optional variables like in projections NPV functions you may want to default some but not others. Simply leaving a blank (ie nothing) inbetween the the commas of the variable you want defaulted will signal a missing value within the function and trigger the default for that variable.