I completed a spreadsheet, which calculates five years of future cash flows, then calculates the Present Value of those future cash flows using a Discount Rate of $15%. The sixth year future cash flow is the terminal year. I calculated the terminal year future cash flow, and then its Present Value. Then I added the five year PV and the sixth year PV to arrive at the Fair Market Value of the company. My only remaining step is to calculate the "Tax Amortization Benefit" to add back to the Fair Market Value of the company. This sum will be the value at which I could acquire/merge this company into "my" own company. The problem seems to be that I do not know how to enter this formula correctly into Excel: AB = PVCF(n/(n-((PV(Dr,n,-1)(1+Dr)^0.5)T))-1) Where AB = Amortization Benefit PVCF = Present Value of Cash Flows n = number of periods (in this case number of years) PV(Dr,n,-1)(1+Dr)^0.5 = Present Value of an Annuity of $1 over n number of years, at the Discount Rate Discount Rate = 15% I believe I'm doing two things incorrectly: the "commas" and the “^”. I believe the "^" means that 0.5 should be a superscript number, or in math terms (1.15) to the "power of" 0.5.

Can someone help?