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Present value of a series of unequal annual cash flows formula

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 Description of the Present value of a series of unequal annual cash flows formula

Formula for the calculation of the present value of a series of annual cash flows with unequal amounts

  Formula

\[ PV= \sum_{n=1}^{N} \frac {F_{n}}{\left( 1+i \right )^n} \ \]

 Symbols

\(F_{n}\ \)       
Cash flow of year n
\(i\ \)       
Annual interest rate
\(N\ \)       
Number of periods (years)
\(n\ \)       
Number of years between today and the payment of the cash flow