To calculate the present value of any cash flow, you need the following formula: Present value = expected cash flow ÷ (1 + discount rate)^number of periods. Year one.

When planning for retirement, you need to account for the value of any annuities that you own. Trouble is, there’s not just one value of an annuity—there are two: present value and future ...

If we were to value this bond at a 4% discount rate, the present value would jump to $12,500 (PV = $500 ÷ 0.04). If we valued it with a 10% discount rate, the present value would fall to $5,000 ...

After adding up all 11 cash flows from the initial -$100 outlay to the 10th year's present value of $9.26, we arrive at a net present value of the project of $34.20. The NPV is positive, so we ...

In the case of a T-bill, we know our purchase price, or present value, its face value or future value, and how long until it matures. For short-term Treasuries, this duration could be 30 to 182 ...

We calculate that the present value of the free cash flows is $326. Thus, if you were to sell this business based on its expected cash flows and a 10% discount rate, $326.00 would be a very fair ...