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What is the present value of 12500 to be received 10 years from today?
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What is the Present value of 700 to be received in two installments of 350 two years from today at a discount rate of 10 percent?
i think the present of 700 is 700%
If the interest rate is 7 percent What is the present value of 150 to be received in 10 years?
pv= 150/(1+.07)^10 76.14
What is the difference between present values and future values?
Present Value ------------------- You know what something WILL be worth in the future, and you want to find out what it should sell for today. Future Value ------------------- You know how much something is worth now, and you want to find out what it will be worth in the future.
What is the relationship between the present value factor and annuity present value factor?
Present value annuity factor calculates the current value of future cash flows. The present value factor is used to describe only the current cash flows.
If the interest rate is 4 percent what is the present value of this stream of payments?
Present value of streams can be found by dividing the streams with 4 percent interest rate for example if stream is 100 then present value will be present value = 100 / .04
What is the present value of 12500 to be received 10 years from today Assume a discount rate of 8 percent compounded annually and round to the nearest 10?
$5,790
What is the present value of 500 to be received 10 yrs from today if it is discount at the rate of 6 percent?
What is the present value of 500 to be recieved 10 yrs from today if it is discount at the rate of 6 percent?
What are the problems involving the time value of money?
We want to know the future value of cash invested or loaned today. We want to know the present value, or today's value, of cash to be received or paid at later dates.
What is the Present value of 700 to be received in two installments of 350 two years from today at a discount rate of 10 percent?
i think the present of 700 is 700%
What is the value of a 1884 Breitling watch?
around about £12500
The farther into the future any given amount is received the larger its present value?
This is false. The farther into the future any given amount is received the smaller its present value.
Difference between present value and net present value?
Present value is the result of discounting future amounts to the present. For example, a cash amount of $10,000 received at the end of 5 years will have a present value of $6,210 if the future amount is discounted at 10% compounded annually.Net present value is the present value of the cash inflows minus the present value of the cash outflows. For example, let's assume that an investment of $5,000 today will result in one cash receipt of $10,000 at the end of 5 years. If the investor requires a 10% annual return compounded annually, the net present value of the investment is $1,210. This is the result of the present value of the cash inflow $6,210 (from above) minus the present value of the $5,000 cash outflow. (Since the $5,000 cash outflow occurred at the present time, its present value is $5,000.)
What is value of money?
The time value of money is based on the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. In particular, if one received the payment today, one can then earn interest on the money until that specified future date. All of the standard calculations are based on the most basic formula, the present value of a future sum, "discounted" to the present. For example, a sum of FV to be received in one year is discounted (at the appropriate rate of r) to give a sum of PV at present. Some standard calculations based on the time value of money are: : Present Value (PV) of an amount that will be received in the future. : Present Value of a Annuity (PVA) is the present value of a stream of (equally-sized) future payments, such as a mortgage. : Present Value of a Perpetuity is the value of a regular stream of payments that lasts "forever", or at least indefinitely. : Future Value (FV) of an amount invested (such as in a deposit account) now at a given rate of interest. : Future Value of an Annuity (FVA) is the future value of a stream of payments (annuity), assuming the payments are invested at a given rate of interest. The time value of money is based on the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. In particular, if one received the payment today, one can then earn interest on the money until that specified future date. All of the standard calculations are based on the most basic formula, the present value of a future sum, "discounted" to the present. For example, a sum of FV to be received in one year is discounted (at the appropriate rate of r) to give a sum of PV at present. Some standard calculations based on the time value of money are: : Present Value (PV) of an amount that will be received in the future. : Present Value of a Annuity (PVA) is the present value of a stream of (equally-sized) future payments, such as a mortgage. : Present Value of a Perpetuity is the value of a regular stream of payments that lasts "forever", or at least indefinitely. : Future Value (FV) of an amount invested (such as in a deposit account) now at a given rate of interest. : Future Value of an Annuity (FVA) is the future value of a stream of payments (annuity), assuming the payments are invested at a given rate of interest.
As the interest rate increases the present value of an amount to be received at the end of a fixed period?
increases
What is share valuation?
Share valuation is the process of defining in rational way how much the security is Worthy calculating the monetary value of the security. There are various methods of calculating security value but present value method is the proper and best ways of calculating security valuation. Because it recognize the time value of money one thousand shillings received today is worth more than one thousand received tomorrow. S.Nkanto
What is the future value of a growing annuity with a present value?
The present value is what it is worth today minus any surrender charges. The future value is what it will be worth in the future at a given interest rate and again minus any surrender charges if applicable.
Why is it important for managers to be familiar with time value of money concepts?
The fact that a dollar to be received next week is worth less than a dollar to be received today is important in finance because the value of a business firm is, fundamentally, the sum of the values today of all the dollars expected to be received by the business firm in the future.
