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4 results for “present value”

Formulae (4)

PV = \frac{FV}{(1 + r)^n}

Present worth of a future sum.

PV = P\frac{1 - (1+r)^{-n}}{r}

Present value of a series of equal payments.

NPV = \sum_{t=0}^{n}\frac{C_t}{(1+r)^t}

Present value of a stream of cash flows.

PV = \frac{C}{r}

Present value of an infinite constant cash flow.