## Reply: Agile Prepcast NPV Calculation

 Name E-mail Your e-mail address will never be displayed on the site. Subject Message [quote="Tashe Chin-Fatt" post=27724]Help - in the Agile Prepcast L009.00.1 at 13:20 there is a calculation for NPV. The formula example shown on the screen is “\$7000/1.05*5=5485” but the narration says “take 7000 and multiply by 1.05 times 5” which seems to contradict what is shown on the screen. When I enter either one on calculator I am unable to arrive at \$5485. Please can you help me understand what the correct formula and calculation should be?[/quote]

## Topic History of : Agile Prepcast NPV Calculation

Max. showing the last 6 posts - (Last post first)
10 months 2 weeks ago #27768

Elizabeth Harrin

Ah, that makes more sense!
10 months 3 weeks ago #27747

Tashé

Thank you so much for your help. I’ve received a response from PM Help Desk. Problem solved:

“This is a known errata that we included in the Errata Sheet. Please see Row 18 of the sheet - MO9:

Here is the link to The Agile PrepCast - Errata Sheet - Google Sheets

The Agile PrepCast - Errata Sheet is part of the appendix. It is located after the module lessons in the LMS. “

The equation should read as exponents \$7000/(1.05^5)
10 months 3 weeks ago #27746

Elizabeth Harrin

Sorry, I can't do it either! Neither of my answers = 5485. Perhaps someone else will come along and give us the secret to working it out.
10 months 3 weeks ago #27724

Tashe Chin-Fatt

Help - in the Agile Prepcast L009.00.1 at 13:20 there is a calculation for NPV. The formula example shown on the screen is “\$7000/1.05*5=5485” but the narration says “take 7000 and multiply by 1.05 times 5” which seems to contradict what is shown on the screen. When I enter either one on calculator I am unable to arrive at \$5485. Please can you help me understand what the correct formula and calculation should be?

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