- Financial Accounting & Bookkeeping
- The Financial Statements
- Statement of Cash Flows
Present value of cash flow
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For each of the cases shown in the following table, calculate the present value of the cash flow, discounting at the rate given and assuming that the cash flow is received at the end of the period
Case Single Cash Flow Discount rate End of period (Years)
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A 7,000 12% 4
B 28,000 8% 20
C 10,000 14% 12
D 150,000 11% 6
E 45,000 20% 8
Use the compound interest formula to calculate the present value
PV = FV ...
The expert examines the present value of a cash flow.