Show the present value of a single flow, Financial Management

Assignment Help:

Q. Show the Present Value of a Single Flow ?

Discounting or else Present Value of a Single Flow (Lump Sum):- We are able to determine the PV of a future cash flow using the formula:

PV = FV (1+i) n

Where FV = Future value of the preliminary flow in n years

PV= Present Value

i= Annual rate of interest

n = No. of years

Example: - Mr. X anticipate to have an amount of Rs. 1000 subsequent to one year what should be the amount he has to invest today if the bank if offering 10% interest rate?

PV = 1000 (1+.10) 1

PV = Rs. 909.09


Related Discussions:- Show the present value of a single flow

Explain about the financial risk, Explain about the Financial risk fina...

Explain about the Financial risk financial risk are presumed to be constant, changing cost of each type of capital, j, over time must be affected only by changes in the supply

Plan for financial management, 1. Review and analyse financial data for the...

1. Review and analyse financial data for the last year to establish areas which have generated a profit or loss in your organisation. 2. Conduct a research to review reasons for

What financial managers look for when they analyze pro forma, What do finan...

What do financial managers look for when they analyze pro forma financial statements? Later than the pro forma financial statements are complete, financial managers analyze the f

Specific cost of capital, Specific Cost of Capital When the Cost of ev...

Specific Cost of Capital When the Cost of every source of capital is individually calculated, it is known as Specific Cost of Capital example Cost of equity, cost of debt, etc

State the terms- stock and share, Explain the terms- Stock and  Share ...

Explain the terms- Stock and  Share Stock Ownership of a company represented by shares that are a claim on the company's earnings and assets. Share Unit of equity

Assignment, I should write assignment on financial management ,but have no ...

I should write assignment on financial management ,but have no idea how to start and how to develop. Please help me

Define the services that international banks provide, Briefly discuss some ...

Briefly discuss some of the services that international banks provide their customers and the market place. Answer:  International banks can be categorized by the types of servic

What is public finance, What is Public Finance Central, state as well...

What is Public Finance Central, state as well as local governments handle large sums ofmoney, which are received from several sources and should be utilized in accordancewith

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd