??? = ∑??? (1 + ?) −t
Can someone please explain this formula and how to apply it?
Thank you
??? = ∑??? (1 + ?) −t
This formula is used for calculating present value of future cash flows. This means what you will receive in future from investing today will have a different value at present. This is because of various economic factors such as inflation, interest rates etc.
NPV means net present value
CF is cash flows
r is the required rate at which the future cash flows are discounted at present value
t is the effect of tax rate
??? = ∑??? (1 + ?) −t Can someone please explain this formula and how to...
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