Using Excel for economic modeling
The following videos will help you learn the basic functions that Microsoft Excel has to offer to aid you in economic modeling.
Text Problem 2-2
Calculate the present value, “P”, at time zero and the corresponding future value, “F” at the end of year three for a series of $15,000 payments to be made at the end of each of years one, two, and three. Assume that no payment is realized at time zero. Use a nominal interest rate of 15.0% compounded annually.
Text Problem 3-21
The following data relates to an oil and gas lease. (click on image for larger version)
- Calculate the annual before-tax cash flows for years 0-5.
- Determine the project ROR, NPV, and PVR for a minimum rate of return of 15%
- Determine the breakeven selling price in years 1-5 that would provide the investor with a 15% ROR.