A B C D E F G H I J K L M N
2
3 PVT
4
5 Category: Discounted Cash Flow
6 Family: DCF Specific Times
7 Arguments: NPVDate, DisAER, Dates, Cashflows, [DayCountDisc], [PrdsDisc], [StartDCF], [FinishDCF], [PVTOptions]
8 Meaning: Present Value of cashflows at specific Dates
9 Description: Returns the PV (present value) of the cashflow represented by Dates and the corresponding Amounts
10        
11 Dates  1 Jan 00  1 Jan 01  1 Jan 02  1 Jan 03  
12 CashFlows (100)   50   50   50  
13        
14
15
16 Disc Rate AER NPV Date DayCount Periods PVT
17     46.75%   1 Jan 99 Omitted Actual Days/Actual Days In Month ('Decimal Year'). Omitted   (18.32)  
18     46.75%   1 Jan 00   30/360 (PSA).       (26.89)  
19     46.75%   1 Jan 98   1.00 Actual/Actual (365 or 366).       (12.49)  
20     23.38%   1 Jan 00   2.00 Actual Days/360.       (0.60)   Excel XNPV
21     23.38%   1 Jan 00   3.00 Actual Days/365.       (0.06)   (0.06)
22     11.69%   1 Jan 00   4.00 30/360 (European).         20.74    
23     11.69%   1 Jan 00   5.00 Actual Days/Actual Days In Month ('Decimal Year').       20.74  
24     11.69%   1 Jan 00   6.00 Actual/Actual (Within Period).     4 Cal Qtrs   20.74  
25     11.69%   1 Jan 00   6.03 Main Period:Actual/Actual (Within Period),Stub Periods:Actual Days/365.   1 Cal Yrs   20.74  
26     11.69%   1 Jan 00   6.00 Actual/Actual (Within Period).   (1) Cal Yrs   20.74  
27     11.69%   1 Jan 00   6.00 Actual/Actual (Within Period).     12 Cal Yrs   20.74  
28          
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30
31 Notes: Excel NPV uses a daycount of ACT/365
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33
34
35 Example of a different use of PVT: Assume cashflows occur continuously
36 Suppose the cashflows above were spread evenly on a daily basis, according to timeperiods that START on the respective Dates
37
38 Disc Rate AER NPV Date DayCount Options PVT
39   10.00%   1 Jan 00   6.00   (a)   24.3426
40 1 (b)   23.2185
41 How the answer was arrived at:
42 Dates  1 Jan 00  1 Jan 01  1 Jan 02  1 Jan 03 Total
43 CashFlows (100)   50   50   50
44 NPV (a) (100.00)   45.45   41.32   37.57   24.3426
45 NPV (b) (95.3823)   43.36   39.41   35.83   23.2185
46
47 Looking at the same example done 6-monthly, it gives the same continous NPV:
48
49 Dates  1 Jan 00  1 Jul 00  1 Jan 01  1 Jul 01  1 Jan 02  1 Jul 02  1 Jan 03  1 Jul 03
50 CashFlows (50) (50)   25   25   25   25   25   25 Total PV (longhand)
51 (48.8273) (46.5550)   22.1942   21.1614   20.1766   19.2376   18.3423   17.4887   23.2185
52
53 PVT
54   23.2185
55
56 Another Continuous example
57
58 Base   3 months Base   6 months Base   12 months
59  1 Jan 00 250  1 Jan 00 500  1 Jan 00 1000
60  1 Apr 00 250  1 Jul 00 500  1 Jan 01 1000
61  1 Jul 00 250  1 Jan 01 500  1 Jan 02 1000
62  1 Oct 00 250  1 Jul 01 500  1 Jan 03 1000
63  1 Jan 01 250  1 Jan 02 500  1 Jan 04
64  1 Apr 01 250  1 Jul 02 500  1 Jan 05
65  1 Jul 01 250  1 Jan 03 500  1 Jan 06
66  1 Oct 01 250  1 Jul 03 500  1 Jan 07
67  1 Jan 02 250  1 Jan 04  1 Jan 08
68  1 Apr 02 250  1 Jul 04  1 Jan 09
69  1 Jul 02 250  1 Jan 05  1 Jan 10
70  1 Oct 02 250  1 Jul 05  1 Jan 11
71  1 Jan 03 250  1 Jan 06  1 Jan 12
72  1 Apr 03 250  1 Jul 06  1 Jan 13
73  1 Jul 03 250  1 Jan 07  1 Jan 14
74  1 Oct 03 250  1 Jul 07  1 Jan 15
75  1 Jan 04  1 Jan 08  1 Jan 16
76 Total   4,000   4,000   4,000
77
78 PVT   3,326 PVT   3,326 PVT   3,326
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