5 6 5 6 B D E G 1 Build out the spreadsheet by filling in the blanks 2 Contains inputs 3 Contains cell reference calculation, formula, or function 4 5 1. The syntax for PV function is =PV(rate, nper, pmt, [FV], [type] 6 Create the time line for the PV function: =PV(rate, 5, 0, $100,0) 7 Period 0 1 2 4 5 8 Cash Flows $0.00 $0.00 $0.00 $0.00 $0.00 $100.00 9 10 Create the time line for the PV function: =PV(rate, 6, 10, 100,0) 11 Period 0 1 4 12 Cash Flows $0.00 $10.00 $10.00 $10.00 $10.00 $10.00 ($160.00) 13 14 Create the time line for the PV function: =PV(rate, 6, 10, -100, 1) 15 Period 0 1 2 4 16 Cash Flows $10.00 $10.00 $10.00 $10.00 $10.00 ($90.00) $8.54 17 18 2. Find the present value of a 5-year ordinary annuity of $100 with 10% Annual Percentage Rate (APR) with interests compounded annually. 19 Requirement: Calculation and output sections must update automatically with changes in data input. 20 21 Data Input 22 In this problem a period is a year 23 Cash Flow / Period $100 24 APR 10.00% 25 Number of Periods 5 26 27 Calculation using a time line approach 28 Effective Discount Rate / Period 10.41% 29 Period 0 30 Cash Flows $0.00 $100.00 $100.00 $100.00 $100.00 $100.00 31 Present Value of Cash Flows (PVCFS) $0.00 $90.91 $82.64 $75.13 $68.30 $62.09 4 32 Output $379.08 33 Sum of all PVCFS 34 Output with other methods Answer Your work + Ready D O