pvYearlyCompSingleCF {tvmComp}

Computing Present Value of a Single Cash Flow with Yearly Compounding.

Description

Computing Present Value of a Single Cash Flow with Yearly Compounding.

Usage

pvYearlyCompSingleCF(r, n, fv)

Arguments

r

A number.

n

A number.

fv

A number.

Details

As Brooks,R. (2018) points out that when we are interested in computing the current value of something that we will receive in the future for that the concept called Present Value is used. He further comments that Present Value is a bit trickier to understand, but it helps us put a price or value today on a future cash flow. To get quantitative estimate of the Present Value, you can use the method pvYearlyCompSingleCF() that computes for you Present Value of a Single Cash Flow with Yearly Compounding Frequency. The method pvYearlyCompSingleCF() gives Present Value when values are passed to its three arguments. Here r is annual rate, n is number of years and fv is Future Value.

Value

Input values to three arguments r , n and fv.

Author(s)

MaheshP Kumar, [e-mail]

References

Brooks,R. (2018). Financial Management (4th Edition). Pearson Education (US). ISBN 9780134730417, https://bookshelf.vitalsource.com/books/9780134731070.

Examples

pvYearlyCompSingleCF(0.08,10,2000)
pvYearlyCompSingleCF(0.08,10,-2000)