Present Value of Multiple Cash Flows

Present Value of Multiple Cash Flows

Present Value of Multiple Cash Flows

We come across many cases where we have to determine the present value of series of multiple cash flows. There are two ways we can calculate present value of multiple cash flows. Either we discount back individual cash flow at a time, or we can just calculate the present values individually and add them up.

Example:

Suppose if we want $10,000 in one year and $15,000 more in two years. If we can earn 8% on this money, how much we need to invest today to exactly earn this much in the future? In other words, what is the present value of two cash flows at 8%.

Present value of $15,000 in 2 years at 8 percent is:

$15000/1.082 =$12860.082

Present value of $100 in 1 years at 8% is:

$10,000/1.08 =$9259.259

The total present value is :

$12860.082+$9259.259=$22119.341

16 thoughts on “Present Value of Multiple Cash Flows

  1. Allen Taylor

    Nice writing. You are on my RSS reader now so I can read more from you down the road.

    Allen Taylor

    Reply
  2. cash advance loans

    Heyy, Found your blog on Bing and I am so glad I did! Keep it up!

    Reply
  3. david

    this i use

    Reply
  4. melatrol

    It’s laborious to find educated people on this subject, however you sound like you understand what you’re speaking about! Thanks

    Reply
  5. Kewish

    Hey! I just wish to give an enormous thumbs up for the nice info you might have right here on this post. I will likely be coming again to your blog for more soon.

    Reply
  6. Curz

    I found your site from altavista and it is eye-popping. Thank you for sharing such an incredible article…

    Reply
  7. Peyton

    Good post! I have a random question for you. How do you get your blog indexed by bing? I have a related web blog.

    Reply
    1. admin Post author

      Thank you dude. It is simply started getting traffic via Bing. I didn’t do any thing special to get it indexed by Bing.

      Reply
  8. international trade

    Awesome article it is really. My boss has been waiting for this tips

    Reply
  9. Darnell Mattheis

    It is really rare to come across a professional person in whom you can have some confidence. In the world these days, nobody genuinely cares about showing others exactly how in this matter. How fortunate I am to have now found a real wonderful web-site as this. It truly is people like you who really make a real difference these days through the ideas they reveal.

    Reply
  10. Danae Deur

    I discovered your blog website on google and test a number of of your early posts. Proceed to maintain up the excellent operate. I just extra up your RSS feed to my MSN Information Reader. Seeking forward to reading more from you later on!…

    Reply
  11. Khadijah Dushane

    This is the correct weblog for anybody who wants to seek out out about this topic. You understand a lot its nearly onerous to argue with you (not that I actually would need…HaHa). You definitely put a brand new spin on a topic thats been written about for years. Nice stuff, simply great!

    Reply
  12. Renda Kinyon

    I truly wanted to develop a simple message in order to appreciate you for some of the remarkable items you are giving here. My considerable internet lookup has now been rewarded with high-quality concept to go over with my great friends. I would claim that we site visitors are truly blessed to live in a very good site with many outstanding individuals with very helpful plans. I feel very privileged to have used your entire web site and look forward to so many more pleasurable minutes reading here. Thank you again for everything.

    Reply
  13. rtyecript

    I really liked the article, and the very cool blog

    Reply
  14. Galen Todman

    Im impressed, I should say. Very rarely do I come across a weblog thats each informative and entertaining, and let me let you know, youve hit the nail on the head. Your blog is important; the concern is some thing that not sufficient people are talking intelligently about. Im really happy that I stumbled across this in my search for one thing relating to this concern.

    Reply
  15. Rhodah,

    waoo, so brilliant, i like..

    Reply

Leave a Reply