0
You may also value from this link which walks through the true value of this concept: http://www.onemillionbucks.net/2008/10/time-value-of-money-not-40-year-old.html Source: Wikipedia The present value (PV) formula has four variables, each of which can be solved for: # PV is the value at time=0 # FV is the value at time=n # i is the rate at which the amount will be compounded each period # n is the number of periods (not necessarily an integer) :
The cumulative present value of future cash flows can be calculated by summing the contributions of FVt, the value of cash flow at time=t : Note that this series can be summed for a given value of n, or when n is .[2] This is a very general formula, which leads to several important special cases given below.
What else can I help you with?
What is the present tense of compute?
the present tense of 'compute' will be 'computing'
How do you compute present and future value of a cash flow stream?
Future Value = Value (1 + t)^n Present Value = Future Value / (1+t)^-n
How do you compute the profitability index of a capital-budgeting proposal?
Dividing the present value of the annual after-tax cash flows by the cost of the project
Compute the current price of the bonds if the present yield to maturity is?
Compute the current price of the bond if percent yield to maturity is 7%
What is an adjective for compute?
It is computed, as in "the computed value".
What method of evaluating capital investment proposals uses the concept of present value to compute rate of return?
The present value method of analyzing capital investment proposals involves the discounting of future cash flows provided by the investment using the the opportunity cost of capital, or weighted average cost of capital. By discounting the cash flows, you are then able to compare the initial investment with the future cash flows in present value terms. When the sum of future cash flows provide a premium to the initial investment, the net present value becomes greater than zero, and the capital investment should be considered. On the other hand, if the initial investment exceeds the sum of future cash flows, the net present value of the project is less than zero and should be discarded.
What is a capital investment's net present value?
Widely used approach for evaluating an investment project. Under the net present value method, the present value (PV) of all cash inflows from the project is compared against the initial investment (I). The net-present-valuewhich is the difference between the present value and the initial investment (i.e., NPV = PV - I ), determines whether the project is an acceptable investment. To compute the present value of cash inflows, a rate called the cost-of-capitalis used for discounting. Under the method, if the net present value is positive (NPV > 0 or PV > I ), the project should be accepted.
Which methods of capital budgeting are the most frequently used?
The most frequently used methods of capital budgeting include net present value (NPV), internal rate of return (IRR), and payback period. NPV compares the present value of cash inflows to the present value of cash outflows over the project's lifespan, taking into account the time value of money. IRR calculates the rate of return that would result in a net present value of zero. Payback period measures the time required to recover the initial investment.
How do you compute instantaneous value at given time of three phase alternator?
your mom nothing
Write a java that computes the value of 2?
Compute means to calculate. What do you want to "compute", if you already know it is 2? If you want to show the value:System.out.println("Your number is " + 2);Compute means to calculate. What do you want to "compute", if you already know it is 2? If you want to show the value:System.out.println("Your number is " + 2);Compute means to calculate. What do you want to "compute", if you already know it is 2? If you want to show the value:System.out.println("Your number is " + 2);Compute means to calculate. What do you want to "compute", if you already know it is 2? If you want to show the value:System.out.println("Your number is " + 2);
How to compute after tax salvage value?
Salvage Value - [Tax * (Market Value - Book Value)
The Guillermo furniture store scenario Compute the return on investment residual income and economic value added for the current situation?
The Guillermo furniture store scenario Compute the return on investment residual income and economic value added for the current situation?
