How to Calculate the Present Value in Microsoft Excel

In financial terms, the Present Value refers to the total amount that a series of future payments is worth at the present time. To calculate this value, you use the PV function which returns the present value of an investment.

Syntax of the PV function is as follows:

=PV(rate,nper,pmt,[fv],[type])

Rate refers to the interest rate per period, usually per annum. For example, if you invest in a fund, such as an education fund for your kids and the fund pays 10 percent annual interest rate with monthly payments, your interest rate per month is 10%/12, or 0.83%. You would enter 0.83%, or 0.0083, into the formula as the rate.

Nper is the total number of payment periods in an annuity. For example, if investment is over a 10 year period, and makes monthly payments, your investment has 10*12 (or 120) periods. Then enter 120 into the formula for nper.

Pmt is the fixed contribution payment you need to make each period. This amount cannot change over the life of the investment. If pmt is omitted, you must include the fv argument.

The fv and type arguments are optional arguments in the function (indicated by the square brackets). The fv argument is the future value or balance that you want to have after making your last payment. If this value is omitted, Excel assumes a future value of zero (0).

The type argument indicates whether the payment is made at the beginning or end of the period: Enter 0 (or omit the type argument) when the payment is made at the end of the period and use 1 when it is made at the beginning of the period.

Let’s assume you have the followings:

Interest Rate (Rate) is 10%

Total number of payment periods (nper) is 10 years or 12*10

Fixed contribution payment you need to make is $500 per month.

Then the formula would look like:

=PV(10%/12,10*12,500,,0)

And it produces a result of -$37,835.58

Excel produces a negative result because it represents money that you would pay, an outgoing cash flow.

What the result means is that if you’re asked to pay an up-front amount that is less that the present value, it’s a good deal. If this up-front amount is more than the present value, you should choose to pay an annuity or a series of payment. This is because the present value of the annuity, -$37,835.58 in this case, is less than what you are asked to pay.

Let’s look at another example and say you’re purchasing a vehicle. You have 2 choices to finance your purchase. You can either pay up-front which cost you $20,000. You can also finance the purchase of your car by paying $400 per month for 5 years at an interest rate of 10%.

To compare the true cost of this purchase, you need to compare the present value of the monthly payments to the $20,000 you would pay today. The formula in this case would look like:

=PV(10%/12,5*12,400,,0)

Which gives a result of -$18,826.15

This means paying $400 per month for 5 years is a better deal as you would be $1,173.85 ($20,000 – $18,826.15) better off.

Public Speaking – When You Use This Talk Template, Your Presentation Will Practically Give Itself!

To have a presentation that’s easy to follow and easy to understand-which should be any speaker’s objective-there needs to be a clear sense of organization. The beauty of a well-organized talk is it not only helps the audience follow along and stay with you, but it also helps you stay on track and not lose your train of thought.

The simplest, yet most powerful, tool for organizing and delivering your thoughts logically and coherently is the “talk template.”

Here’s an outline and explanation of the elements of the template. Note it’s divided into three parts. But it’s not three equal parts. Like the famous sandwich of the comic strip character Dagwood, all the meat is in the middle. The intro and conclusion serve to hold it all together, to add a little flavor and interest, but the body is the meat of your talk-it’s what you’ve got to say.

I. INTRODUCTION: The introduction sets the stage, establishes your credibility, gets your momentum going, and makes the audience want to listen to you. Two components:

A.    Hook: get the audience’s attention. Reel ‘em in. A great hook will make the audience take notice and want to listen to you. Possible hooks include: an anecdote, story, prop or visual, question, quotation, startling statement.

B.     Reason to Listen: Tell the audience how they’ll benefit from your talk. How will it will make them happier, safer, more successful, make their jobs easier, make their wallets thicker?

II.             BODY: This is the meat of your talk. Here is where you present your main ideas in a logical order and explain and elaborate on each point as much as your time limit allows. It’s composed of:

A.    Road Map: Just as a map on a road trip helps you know where you’re going, a road map for your talk lets the audience know where you’re going to take them. It makes it easier for them to follow along. This is the same thing as the classic speech adage, “Tell ‘em what you’re going to tell ‘em.”

B.     Main Points: Identify your main ideas-usually about three to five-and chose the most logical way to order them.

  • Topical-your main points are arranged by particular topics.
  • Chronological-your main points follow a natural sequential flow, such explaining a recipe.
  • Spatial-your points are arranged according to geography, such as reports about the North, South, East and West divisions; or a description of a room, a building, a city.
  • Problem-Solution-you explain the problem you encountered, then describe how you solved (or propose to solve) it.

III.    CONCLUSION: The ending of your talk is important because it’s your last chance to make a good impression. To be effective, it should have two elements, plus note how the Q&A is inserted:

  1. Summary: bring it all home, wrap it all up, deliver one final gem that embodies the essence of what you’ve said.
  2. Q&A. In order preserve the impact of your close, consider opening the floor for questions before you deliver your closing. After your Q&A session, you deliver your closing statement.
  3. Closing: bring the talk to a definitive and memorable end. You can use the same tools in closing as in your hook: an anecdote, story, prop or visual, quotation.

A final thought about your template. Don’t write it out word for word. Instead, outline it with key words and bullet points-enough to keep you on track, but not so much that you feel the need to read them. This will enable you to be conversational and natural, a great attribute of a compelling speaker.

How Do Restaurants Tackle the Question of Food Waste?

Many restaurants try their best to reduce waste by implementing standards and policies, and while some have succeeded, some have not, because such efforts need to be done efficiently so that it does not hamper the day-to-day operations of the establishment, but still reduces waste from every possible aspect of its processes. Reducing food waste is usually the responsibility of all kitchen staff, but it is the head of kitchen who will be help responsible by management to reduce costs in their department. The head of the department may be the one wearing the chef apron, coat and toque, but he is also the person who needs to work out better ways of reducing waste in his division.

Restaurants use many methods to reduce waste in every possible way, in addition to food waste. They use more durable uniforms such as those made of high-quality fabrics or denim aprons, as well as ensuring that guests amenities are used in a proper way within their premises.

However, as the biggest problem and biggest expenses they face is food waste, here are few tips pf how a restaurant can reduce it.

Measure food waste – Keeping a track of food waste can help any restaurant or hotel to identify areas where they can scale back on their processes without hampering the supply to their customers. Incorporating an inventory for it can help you know exactly where your food waste is greater so that you know what to do to cut down on it.

Predicting orders – Have a system in place where you predict the food orders per day, so that you can prepare for that exact amount, instead of over-prepping and wasting.

Training staff – Training staff who handle food and engaging their help to reduce food waste is a very effective way in which you can control it, since they are the ones who are regularly preparing and arranging the food, and they will be able to provide better more innovative ideas for reducing wastage.

Proper stock control – Efficient ordering and stock rotation is very important in your endeavors to reduce waste, by not over ordering on things that may spoil after some time and thus result in greater wastage. In addition, all food items should be stored in a proper manner in clearly marked containers and packages, which will include the date purchased. Practicing a proper food order rotation means you will always serve only the freshest produce, rather than old frozen stock.

Excess food – While it is sometimes inevitable that you will have excess food, you need to have a proper plan on what you do with it. Most restaurants and hotels practice donating such food to homeless shelters or soup kitchens to feed the needy, rather than waste it. On occasions when you have extra ingredients, you can find alternative ways to use it, and perhaps make some extra profits at the same time.

Composting – One of the major disadvantages of food waste in the environmental impact it has, and a way to reduce this is by composting the biodegradable items. If you have your own fruit and vegetable gardens, as many establishments now do, then this compost can serve as a natural fertilizer for your crops.

Recycling – Certain things like paper, plastic, glass etc can be given for recycling, once again reducing the negative impact you have on the environment. You should have clearly marked separate bins for disposal of recyclable waste, so that you can do it more effectively and efficiently.

Many establishments these days are more environmentally conscious, taking extra efforts to reduce the negative impact they have on it with sustainable practices. Increased food waste means more garbage and landfills, causing a huge problem, and reducing such waste can help you not only save the environment but reduce your costs as well. Effectively working towards reducing waste can improve your profit margins since you are not spending on unnecessary food which you will ultimately throw away. Plus, as we said efficient reordering means you are serving only food made from fresh ingredients, improving the taste and quality of your food