F = Future value P = Present Value i = Intrest Rate n = no. of years Therefore, the formula for future value of present amount :- F= P (1+i)n
The Present Value Interest Factor PVIF is used to find the present value of future payments, by discounting them at some specific rate. It decreases the amount. It is always less than oneBut, the Future Value Interest Factor FVIF is used to find the future value of present amounts. It increases the present amount. It is always greater than one.
The present value annuity formula is used to simplify the calculation of the current value of an annuity. A table is used where you find the actual dollar amount of the annuity and then this amount is multiplied by a value to get the future value of that same annuity.
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.
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 analysis is a financial technique used to evaluate the value of future cash flows by discounting them back to their current value. It takes into account the time value of money, allowing for better decision-making by comparing the present value of costs and benefits. The goal is to determine whether an investment or project is worth pursuing based on its potential return.
cost-benefit analysis
to find out the approximate value
Goal Seeking analysis
You can use the PV function or the NPV function. Present Value is the result of discounting future amounts to the present. Net Present Value is the present value of the cash inflows minus the present value of the cash outflows.
F = Future value P = Present Value i = Intrest Rate n = no. of years Therefore, the formula for future value of present amount :- F= P (1+i)n
The Present Value Interest Factor PVIF is used to find the present value of future payments, by discounting them at some specific rate. It decreases the amount. It is always less than oneBut, the Future Value Interest Factor FVIF is used to find the future value of present amounts. It increases the present amount. It is always greater than one.
Many websites have a present value calculator, you should be able to find ones that are free and easy to use. You will need to enter in the future value, intrest rate and the number of years.
internal rate of return and net present value
Factor affecting statment value analysis
Ramon E. Johnson has written: 'Field of Membership and Performance' 'Financial valuation and analysis' -- subject(s): Business mathematics, Present value analysis, Valuation
no different it's the same