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.
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