|PVA (NPVDate, DisAER, AnnualCashFlows, StartAnnDate, [DCountDisc], [StartDCF], [FinishDCF])|
|Present Value of an annual stream of cashflows|
|Calculates the Net Present Value of a series of annual cashflows. It is the simplest of the DCF (Discount Cash Flow) functions.|
Whats good or unique about it
Like Excel"s NPV function but with more options, notably allowing for a separate NPV date (not just the start of the cashflow) and allowing the use of (optional) Daycount options.
For Excel Experts
This is similar to Excel"s NPV function but is more specific. Excels function assumes end of year cash flows as the default which means that that the first cash flow is always discounted 1 year. PVA is more explicit in its assumption, forcing you to specify an NPVDate and a StartAnnDate so that there is no doubt as to the timing of your cash flows. Note however, that StartAnnDate is the date of the first cashflow.
PVA takes into account daycount when determining the length of time between NPVDate and StartAnnDate , because this might be an inexact number of years. This is the only application of daycount in this function. Cash flows are discounted using traditional annuity formulae on an annual basis.