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Flashcards in Time Value of money Deck (7)
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1

Future value

C x (1+r)^t

2

Present Value

C/(1+r)^t

3

Net Present Value

CF0 + CF1/(1+r) + CF2/(1+r)^2 + ... + CFt / (1+r)^t

4

Perpetuity

Constant Stream of cashflow, every unit of time and forever

PV=C/r

5

Growing perpetuity

Perpetuity that grows at a constant rate g

PV=C/(r-g)

6

Annuity

Constant Stream of cashflows, fixed number of units, maturity of T periods

PV = C/r x (1-(1/(1+r)^t))

7

Growing annuity

Annuity that grows at a constant rate g

PV= C/(r-g) x (1-(1+g)^t/(1+r)^t)