When performing time value of money calculations with a financial calculator or Excel,PV and FV must have opposite signs.

Question

Quizplus · Accepted Answer

PV represents the present value of cash flows, and FV represents the future value of cash flows. Since cash flows that occur in the future have less value than those occurring in the present due to the time value of money, PV and FV must have opposite signs in order to reflect the direction of each cash flow.

When Performing Time Value of Money Calculations with a Financial