help pvfix-------------------------------------------------------------------------------

Title

pvfix-- Returns the present value of a series of equal payments (cash flows)

Syntax

pvfix, cf(#) nper(#)frequency(timeunit)rate(#)[options]

optionsDescription ------------------------------------------------------------------------- Maincf(#)Value of the constant cash flows (positive number)nper(#)Number of payment periods (positive integer)frequency(timeunit)Time unit of payments (m, q, h, y)rate(#)Nominal annual interest rate (in decimal form)Options

extrapaymentPayment received other thancf(#)in the last period (positive number)due(#)When payments are due or made: 0 = end of period (default), or 1 = beginning of periodresult(mymatrix)Set the discounted cash flows' schedule matrix name -------------------------------------------------------------------------

timeunitdefinition ---------------------------------------------------------------------mmonthly paymentsqquarterly paymentshhalfyearly paymentsyyearly payments ---------------------------------------------------------------------

Description

pvfixReturns the present value of a series of equal payments (based on a compounded constant interest rate).pvfixgenerates a three column matrix (rows = nper) containing the entire schedule of discounted cash flows distinguishing between: period number, discount factor and cash flows' present value.

+---------+ ----+ Options +----------------------------------------------------------

cf(#)Value of the constant cash flows.

nper(#)Number of payment periods. For example, if you want the present value of five-year monthly cash flows, it will have 5*12 = 60 periods. The formulanper(60).

frequency(timeunit)Time unit of payments (m, q, h, y). Used to convert the annual interest rate into a periodic rate.

rate(#)Nominal annual interest rate (in decimal form).i.e.an annual 5.24% interest rate should be written 0.0524.

extrapaymentPayment received other thancf(#)in the last period, default is 0.

due(#)When payments are due or made: 0 = end of period (default), or 1 = beginning of period.

result(mymatrix)Set the discounted cash flows' schedule matrix name saved in results, default ismatpvcf.

Examples

. pvfix, cf(10000) nper(60) frequency(m) rate(.1125) due(1). pvfix, cf(1500) nper(5) frequency(y) rate(.125) res(cf1). mat list r(cf1)

Saved results

pvfixsaves the following inr():Scalars

r(cf)cash flow valuer(nper)total number of payment periodsr(freq)number of payment within a yearr(iy)annual interest rater(due)due valuer(extrap)extra payment valuer(PV)Present value of constant cash flowsMatrices

r(matpvcf)schedule of discounted cash flows

AuthorMaximo Sangiacomo

Email:msangia@hotmail.com