Glossary
| Term | Definition |
|---|---|
| Relative Reference | A cell reference that shifts automatically when a formula is dragged (e.g. A1). |
| Absolute Reference | A cell reference locked in place regardless of where a formula is dragged, marked with $ (e.g. $A$1). |
| VLOOKUP | A vertical lookup function: searches the first column of a table and returns a value from another column in the same row. |
| INDEX/MATCH | A more flexible alternative to VLOOKUP that can search in any direction. |
| NPV (Net Present Value) | The value today of a series of future cash flows, discounted at a given rate. |
| IRR (Internal Rate of Return) | The discount rate that makes NPV equal to zero. |
| PMT | A function that calculates the fixed periodic payment needed to pay off a loan. |
| Discount Rate | The rate used to convert a future cash flow into its present value. |
| Circular Reference | An error that occurs when a formula refers back to itself, directly or indirectly. |