Present value of a series of equal annual cash flows formula
Financial acronyms
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Description of the Present value of a series of equal annual cash flows formula
Formula for the calculation of the present value of a series of annual cash flows of equal amount
Formula
\[ PV= \sum_{n=1}^{N} \frac {F}{\left( 1+i \right )^n} \ \]
Symbols
\(F\ \)
Recurring cash flow
\(i\ \)
Annual interest rate
\(N\ \)
Number of periods (years)
\(n\ \)
Number of years between today and the payment of the cash flow