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Present Value with Even Cash Flows- Ordinary Annuity

Present Value with Even Cash Flows- Ordinary Annuity

Present value with even cash flows or annuity will be deposited or invested today with appropriate discount rate, and after that different even cash flows or annuity will be received during more than one period.

The ordinary cash flows occur at the end of each period.

Which:

  • PVA: present value of ordinary annuity
  • PVAF(r,t)= [1-1/(1+r)t]/r : present value annuity factor 
  • C: annuity

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