Economics Time Value Of Money Questions
The formula to calculate the present value of a series of cash flows is:
PV = CF1 / (1+r)^1 + CF2 / (1+r)^2 + CF3 / (1+r)^3 + ... + CFn / (1+r)^n
Where PV is the present value, CF is the cash flow in each period, r is the discount rate, and n is the number of periods.