May 19th, 2015
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New England College of Business and Finance
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NPV calculates the net present value of equally spaced cash ows at a given discount rate. (The XNPV function can be used when cash ows are not equally spaced; this function is included in Excel 2007, but is part of the Analysis ToolPak add-in in Excel 2003) PMT calculates the constant level of repayment required on a loan (interest and principal) with a xed interest rate (similarly PPMT calculates the principal repayment component only).

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