What is the present value of an investment that will pay $1,000 in 5 years, if the discount rate is 10% per annum?
Using the portfolio return formula:
Using the future value formula:
Using the ROI formula:
Where: PV = present value FV = future value = $1,000 r = discount rate = 10% = 0.10 n = number of years = 5 Ushtrime Te Zgjidhura Investime
Total Cash Flows = $100 + $120 + $150 = $370 What is the present value of an investment