PWF

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PWF

PWF (Present Worth Function) is an economic function that provides the ratio of the present worth of a series of N future payments to the amount of the payment in the first year. These payments inflate at rate Inflation per period.

The format of the function is

     PWF(N, Inflation, Discount)

where
      N is the number of periods (e.g., years) considered in the economic analysis.
      Inflation is the inflation rate (expressed as a fraction) per period.
      Discount is the market discount rate (expressed as a fraction) per period.

PWF is an example of an EES external function written as a dynamic link library file. External functions can be written in C++,DELPHI, Fortran or other compiled languages.

See the on-line help for details relating to external functions.

Example:
Amount = 1000 [$] "amount of first payment"
Periods = 15            "15 payments"
Interest = 0.06 [-]   "interest rate per pay period"
Discount = 0 [-]       "discount rate per pay period"
P=Amount*PWF(Periods,Interest,Discount) "Current value of 15 payments of $1000 inflated at 6% per period"

{Solution: P = $23276}