The formula for calculating Present Value Factor is.
initial capital / avrg annual cash flow.
initial rate of return / initial investment
percent Value of cash inflow / present value of cash outflows
initial investment / average anual cash inflow
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The Present Value of One or PV Factor, the Present Value Factor is a formula used to calculate the Present Value of 1 unit n number of periods into the future. The PV Factor is equal to 1 ÷ (1 +i)^n where i is the rate (e.g. interest rate or discount rate) and n is the number of periods.
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