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

Determination of credit terms, Determination of Credit Terms:- The sec...

Determination of Credit Terms:- The second feature of receivable management, subsequent to setting the credit standards and assessment of credit worthiness of the customers, i

Explain about the equity claims in the financial security, Explain about th...

Explain about the equity claims in the financial security. Equity classifies claims to shares into the net income and assets of a firm, and they do not contain a maturity date.

Which method should we use to valuate young companies, Which method should ...

Which method should we use to valuate young companies with high growth but uncertain futures? Two examples were Boston Chicken and Telepizza when they began. The great majo

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

Financial and economics evaluation, An offer given by charitable trust to d...

An offer given by charitable trust to develop and build a facility on a 10000 sqmt of plot in a prime locality of pune where 5000 sqmt of area will be used by the trust for housing

Senior versus subordinate bonds, This is again a distinction which be...

This is again a distinction which becomes important in case of a default. The senior bondholders have to be paid before the subordinate bondholders. This means th

Define the tactics of shareholders used after the bid, After the bid Ta...

After the bid Tactics can be undertaken by directors to ensure that their shareholders don't accept the bid, if that is what they desire. Reject Share

Show the working capital forecasting techniques, Q. Show the Working Capita...

Q. Show the Working Capital Forecasting Techniques? Working Capital Forecasting Techniques or else Computation Of Working Capital: - A number of processes are used to determine

Commodities exchange, Explain the organization and function of commodities...

Explain the organization and function of commodities exchange

Define decision to not permit price to ration goods, What reasons do govern...

What reasons do governments frequently give to justify the decision to not permit price to ration goods? (a) Price gouging is bad. (b) Income is unfairly distributed. (c) Some

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