`PV = C_1 /(1+ "r" ) `

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The Present Value of Investment is the value today of an amount to be received in the future. In other words, this equation is representing the amount you have to invest today at a given interest rate over a specified time period to accumulate the future amount.

Input Variables:

C_1- Cash flow at date

r- rate (sometimes referred as discount rate)

Output for Formula:

Returns the present value of investments

 

Notes

Present Value can sometimes be referred to as Discounted Value.