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- Rate Projections Functions Walkthrough
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NPV of Annual To Periodic CashFlows - CorrectionM | |
Mathematics of the PV correction from annually in arrear to periodic payments | |
The function CorrectionM is used to correct an NPV which assumes annual cash flows in arrear to an NPV assuming cash flows are evenly spaced out throughout the year. Usage of CorrectionM if NPVA = NPV assuming payments are annually in arrear NPVM = corrected NPV assuming payments are evenly spaced throughout the year. m = Payments Per Year, +ve for payments in advance, -ve for payments in arrear, e.g. -12 = monthly in arrear, 4 = quarterly in advance, -1 in annually in arrear. then NPVM = NPVA x CorrectionM ![]() |