In: Finance
Calculate the present value (PV ) of a cash inflow of $500 in one year, and a cash inflow of $1,000 in 5 years, assuming a discount rate of 15%.
present value (PV ) of a cash inflow | 931.96 | |||
Statement showing Cash flows | ||||
Particulars | Time | PVF 15% | Amount | PV |
Cash Flows | 1.00 | 0.8696 | 500.00 | 434.78 |
Cash Flows | 2.00 | 0.7561 | - | |
Cash Flows | 3.00 | 0.6575 | - | |
Cash Flows | 4.00 | 0.5718 | - | |
Cash Flows | 5.00 | 0.4972 | 1,000.00 | 497.18 |
Present value of Cash flows | 931.96 |