Present financial position and performance of the firm
where PIFR,N is the present value interest factor for interest rate R and N periods found in Appendix Table 1 and PV is the present value of a sum FVN received N periods from now. For example, what is the present value of $500 to be received 10 years from today if the discount rate is 6 percent? (35) PV = $500/(1+.06)10 = $500[1/(1.791)] = $500 ... ................
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