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The future amount itself and a discount rate.
Interest rates are also known as discount rates because in order to calculate the present value of a future amount, the future amount must be discounted back to the present
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.
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
Net present value method has value adding-up property