How to Use Cardy-McCardell Calculator
- Choose the currency first so future value and NPV are displayed with the correct symbol.
- Enter the principal or present value that compounds over the selected number of periods.
- Enter the rate as a percentage per period, then enter the number of compounding periods.
- Enter cash flows separated by commas, spaces, or line breaks. Each cash flow is discounted according to its position in the list.
FV = PV x (1 + r)^n
NPV = -PV + Σ Ct / (1 + r)^t
- r is the periodic rate written as a decimal, n is the number of periods, and Ct is the cash flow at period t.
Use Cases for Cardy-McCardell Calculator
- Comparing investment assumptions with different rates and holding periods.
- Testing whether a stream of expected cash flows justifies an upfront cost.
- Explaining the difference between compounding a principal and discounting future cash flows.