Question

With uniform Annual Cash inflow of Rs 20,000 and DF at 12% for 6 years,
Calculate total PVCI.

Answer 1

Answer:

Present and Net Present Value

Present and net present value, both of them aim to calculate the present value of the future cash. Present value is the current value of tomorrow’s cash, available at a discount rate of interest. Furthermore, the net present value is primarily the current value of cash inflows subtracted by the cash outflows. Well, let’s understand the whole concept in a better manner.

Browse more Topics Under Time Value Of Money

Simple and Compound Interest

Depreciation

Effective Rate of Interest

Present and Net Present Value

Future Value and Perpetuity

Annuities and Sinking Funds

Valuation of Bonds and Calculating EMI

Calculations of Returns