calculating a discount rate
there! I found this forum and thought this would probably the best place to pose my question;
I am calculating the discount rate for 4 different revenue streams:
Initial costs / Revenue 1st yr / Revenue 2nd yr / 3rd yr / 4th yr Discount rate
It seems to be that there there is no upper limit for an positive discount rate (alternative 3). For a negative discount rate (see alternative 2 and 3), however, it seems that there is no possibility for getting a negative discount flow below 100% --> am I right in my assumption or do I miss anything here?
I am taking an Excel class and working on a project. I need some help calculating the discounted price of something. What I did is divide the price of something by the percent of discount. Example $15.50/15%. Some of the cells have 0% discount because they don't get one. When I fill in the formula I get an error #DIV/0!
because the discount value is 0. How can I fix this. I have to compare to see how much the discount of sales can affect the total amount of sales.
I have following problem:
Salesmen give x% in discount
If discount % is between 0-4% he gets 25% bonus
If discount is 5-9% he gets 20%
If discount is 10-14% he gets 15%
If discount is 15-20% he gets 5%
If discount is >20% he gets 0%
How can I make function for this.
So present value = future value / (1+discount rate)^n where n is the number of compounding periods.
If I have PV, FV, and n, I assume I use the RATE formula to get the interest rate. I keep getting #NUM.
I am working on calculating a yearly cost for a service provider. The fixed rate in this section is $12.00 per day which will be multiplied by a certain number of hours within a year. However, the provider is also given a blank "exception" cell in this row in which to enter a different rate of their choosing (could be different each time). How can I write a formula stating if the "exception" cell is blank to look to the $12.00 daily rate and multiply that by the hours per year. And vice versa, if there is an amount in the exception cell, to use that daily rate and not the $12.00 fixed rate. Hope I have explained that well enough. Thank you. C
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