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What does present value not do?

Updated: 9/17/2019
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Q: What does present value not do?
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Is the present value factor the exponent of the future value factor?

The present value factor is the exponent of the future value factor. this is the relationship between Present Value and Future Value.


How is the future value related to the present value of a single sum?

The present value is the reciprocal of the future value.


If you want to find the present value of an investment you should choose the financial function?

You can use the PV function or the NPV function. Present Value is the result of discounting future amounts to the present. Net Present Value is the present value of the cash inflows minus the present value of the cash outflows.


Present Value Calculator?

Present Value Calculator Use this calculator to determine the present value of a stream of deposits plus a known final future value.


What is the relationship between present value factor and annuity present value factor?

Present value annuity factor calculates the current value of future cash flows. The present value factor is used to describe only the current cash flows.


What is the relationship between the present value factor and annuity present value factor?

Present value annuity factor calculates the current value of future cash flows. The present value factor is used to describe only the current cash flows.


What happens to the present value if you increase the rate?

the present value will go down


Difference between present value and net present value?

Present value is the result of discounting future amounts to the present. For example, a cash amount of $10,000 received at the end of 5 years will have a present value of $6,210 if the future amount is discounted at 10% compounded annually.Net present value is the present value of the cash inflows minus the present value of the cash outflows. For example, let's assume that an investment of $5,000 today will result in one cash receipt of $10,000 at the end of 5 years. If the investor requires a 10% annual return compounded annually, the net present value of the investment is $1,210. This is the result of the present value of the cash inflow $6,210 (from above) minus the present value of the $5,000 cash outflow. (Since the $5,000 cash outflow occurred at the present time, its present value is $5,000.)


How do you define the value of value?

I need a answer how do you know when to use future value or present value and future value of a annuity and present value of annuity Please help


Lump Sum Present Value Calculator?

Lump Sum Present Value Calculator Use this calculator to determine the present value of a future lump sum.


What is a present value calculator?

A present value calculator is a calculator that is used to figure out the future value of something based on constant payments and interest rates. It helps to calculate the present value as well.


If the interest rate is 4 percent what is the present value of this stream of payments?

Present value of streams can be found by dividing the streams with 4 percent interest rate for example if stream is 100 then present value will be present value = 100 / .04