The present value of a single future sum can be expressed in a generalized form with the formula:
$$PV=C_{t}\times \frac {1,00}{(1+r)^{t}}$$
Ct— future value;
r— discount rate;
t— number of periods.
Often, an investor may receive multiple cash flows at different times in the future. The present value of multiple future cash flows is simply the sum of the present values of each individual cash flow.
See also:
Present Value FAQ
What is present value?
It is the current worth of future cash flows.
How do you calculate it?
Discount future cash flows using the interest rate.
