When entering a formula, what signifies a negative value for the Present Value argument?

The present value argument in financial formulas often indicates cash flow or investments made in the past. When you want to denote a negative value for the present value, a common convention is to use a minus sign (-) in front of the number. This indicates that the cash flow or investment is an outgoing payment or expense, as opposed to an incoming amount which would be represented as a positive number.

Using a minus sign for negative values is standard practice in financial calculations, allowing for clarity in cash flow analysis and ensuring that calculations properly reflect the nature of the transaction. In contrast, parentheses are often used to indicate negative numbers in accounting and financial statements, but in the context of formulas and functions within spreadsheet applications, the literal minus sign serves a specific function in the formula syntax.

Thus, utilizing a minus sign effectively indicates that the present value is negative, playing a crucial role in the operations and calculations you perform within any financial modeling or analysis.