{"text_format":"3","workbook":"xls","n_sheets":3,"sheets":["Real rate","Infl factor","NPV"],"read":"whole","date_system":"1900","formulas":"cached_only"}

{"sheet":"Real rate","index":0,"n_rows":18,"n_cols":4,"rows_kept":18,"flags":["formulas_cached_only"]}
["INFLATION AND THE REAL RATE OF INTEREST"]
[]
[]
["Interest rate",{"v":0.12,"d":"12.00%"}]
["Inflation rate",{"v":0.05,"d":"5.00%"}]
[]
["Real interest rate",{"v":0.06666666666666665,"d":"6.67%"},null,"( 1 + Interest Rate ) / ( 1 + Inflation Rate )  -  1"]
[]
[]
["EXAMPLE"]
[]
["Cash today",{"v":100,"d":"100.00"}]
["Plus interest",{"v":12,"d":"12.00"}]
["Cash next year",{"v":112,"d":"112.00"}]
[]
["Price today",{"v":106.66666666666667,"d":"106.67"}]
["Plus inflation",{"v":5.333333333333334,"d":"5.33"}]
["Price next year",{"v":112,"d":"112.00"}]

{"sheet":"Infl factor","index":1,"n_rows":19,"n_cols":5,"rows_kept":19,"flags":["formulas_cached_only"]}
["INFLATION AND CONSTANT DOLLAR FACTORS"]
[]
["Current price",{"v":200,"d":"200.00"}]
["Inflation rate",{"v":0.05,"d":"5.00%"}]
[]
["Year",0,1,2,3]
[]
["Price",{"v":200,"d":"200.00"},{"v":210,"d":"210.00"},{"v":220.5,"d":"220.50"},{"v":231.525,"d":"231.53"}]
["Inflation factor",{"v":1,"d":"100.00%"},{"v":1.05,"d":"105.00%"},{"v":1.1025,"d":"110.25%"},{"v":1.1576250000000001,"d":"115.76%"}]
[]
["Inflation Factor  =  Previous Inflation Factor  x  ( 1 + Inflation Rate )"]
[]
["Price",{"v":200,"d":"200.00"},{"v":210,"d":"210.00"},{"v":220.5,"d":"220.50"},{"v":231.525,"d":"231.53"}]
["Constant dollar factor",{"v":1,"d":"100.00%"},{"v":0.9523809523809523,"d":"95.24%"},{"v":0.9070294784580498,"d":"90.70%"},{"v":0.863837598531476,"d":"86.38%"}]
["Price in constant dollars",{"v":200,"d":"200.00"},{"v":200,"d":"200.00"},{"v":199.99999999999997,"d":"200.00"},{"v":200,"d":"200.00"}]
[]
["Constant dollar factor  =  1 / Inflation Factor"]
[]
["Constant dollar factor  =  Previous Constant Dollar Factor / ( 1 + Inflation Rate )"]

{"sheet":"NPV","index":2,"n_rows":21,"n_cols":6,"rows_kept":21,"flags":["formulas_cached_only"]}
["NPV CAN BE CALCULATED IN NOMINAL OR REAL TERMS"]
[]
["Interest rate",{"v":0.12,"d":"12.00%"}]
["Inflation rate",{"v":0.05,"d":"5.00%"}]
["Real interest rate",{"v":0.06666666666666665,"d":"6.67%"}]
[]
["Year",0,1,2,3]
[]
["Cash flow ",{"v":-400000,"d":"(400,000)"},{"v":100000,"d":"100,000"},{"v":200000,"d":"200,000"},{"v":300000,"d":"300,000"}]
["PV factor",{"v":1,"d":"100%"},{"v":0.8928571428571428,"d":"89%"},{"v":0.7971938775510202,"d":"80%"},{"v":0.7117802478134109,"d":"71%"}]
["PV of cash flow",{"v":-400000,"d":"(400,000)"},{"v":89285.71428571428,"d":"89,286"},{"v":159438.77551020405,"d":"159,439"},{"v":213534.07434402325,"d":"213,534"}]
["Cumulative PV",{"v":-400000,"d":"(400,000)"},{"v":-310714.28571428574,"d":"(310,714)"},{"v":-151275.5102040817,"d":"(151,276)"},{"v":62258.56413994156,"d":"62,259"}]
["NPV",{"v":62258.56413994156,"d":"62,259"}]
[]
["Cash flow",{"v":-400000,"d":"(400,000)"},{"v":100000,"d":"100,000"},{"v":200000,"d":"200,000"},{"v":300000,"d":"300,000"}]
["Constant dollar factor",{"v":1,"d":"100%"},{"v":0.9523809523809523,"d":"95%"},{"v":0.9070294784580498,"d":"91%"},{"v":0.863837598531476,"d":"86%"}]
["Real cash flow",{"v":-400000,"d":"(400,000)"},{"v":95238.09523809524,"d":"95,238"},{"v":181405.89569160997,"d":"181,406"},{"v":259151.2795594428,"d":"259,151"},"     Cash Flow x Const $ Factor"]
["Real PV factor",{"v":1,"d":"100%"},{"v":0.9375,"d":"94%"},{"v":0.87890625,"d":"88%"},{"v":0.823974609375,"d":"82%"}]
["Real PV",{"v":-400000,"d":"(400,000)"},{"v":89285.71428571429,"d":"89,286"},{"v":159438.77551020408,"d":"159,439"},{"v":213534.0743440233,"d":"213,534"},"     Real CF x Real PV Factor"]
["Cumulative real PV",{"v":-400000,"d":"(400,000)"},{"v":-310714.2857142857,"d":"(310,714)"},{"v":-151275.5102040816,"d":"(151,276)"},{"v":62258.56413994171,"d":"62,259"}]
["NPV",{"v":62258.56413994171,"d":"62,259"}]