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Present Value with Uneven Cash Flows-Present Value Due

Present Value with Uneven Cash Flows-Present Value Due

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

There are often four parts to equation (time value of money for multiple cash flows): the present value (PV), the future value (FV), the discount rate (r), and the number of periods of the investment (t). If three of these (FV, r and t) are given, so we can find the present value (PV).

The cash flows due occur at the beginning of the each period.

 

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