NFV Calculation

Written by:Abraham A.
Location:DCF Analysis

Finance.ThinkAndDone.com provides you online tool to perform net future value NFV calculation from series of cash flows and the discount rate aka WACC. NFV method is used to find the net future value of an investment or that of an annuity; in both instances cash flows are compounded at the discount rate for time period t where t ranges from n-1 to 0 for an ordinary annuity and from n to 1 for an annuity due. An organization usually accepts a projoect that has highest positive net future value that maximizes the profits.

Location: DCF Analysis

NFV Calculation

Developed by:Emma A.
Location:Financial Calculations
type in the authorization code in the box located below:

Results

Compounded Net Cash Flows
0 -50,000.00 1.315932 -65,796.59
1 20,000.00 1.265319 25,306.38
2 20,000.00 1.216653 24,333.06
3 20,000.00 1.169859 23,397.17
4 20,000.00 1.124864 22,497.28
5 20,000.00 1.081600 21,632.00
6 -10,000.00 1.040000 -10,400.00
Net Future Value (Annuity Due) T= 0 to N-1 40,969.30

Input Data

type in the discount rate:  %
type in net cash flows in the space below:



Check this if different discount rates are used for each cash flow:

Instructions

To perform net future value calculation with this online tool, you need to type in the series of net cash flows along with the discount rate. In case of a capital budgeting project, the discount rate is WACC yet for an annuity problem the discount rate is the interest rate at which the annuity payments are compounded.

  • At first, you have to type in the cash flows where each of the cash flow is separated by a space such as -100000 35000 35000 35000 35000 35000 -10000
  • You have to select the type of payments such as start of period payments for annuity due or end of period payments for ordinary annuity
  • You must specify a discount rate such as 5
  • Finally a click on CALCULATE button will display detailed step step workout for NFV calculation
Location: Financial Calculations