Present value of future sum
Input(s)
\(i_{e}\): Effective Interest or Discount Rate Fraction (fraction)
\(\mathrm{t}\): Time (year)
\(F_{v}\): Future Sum Received at Time \(t\) (currency unit)
Output(s)
\(P_{v}\): Present Value of Future Sum (currency unit)
Formula(s)
\[
P_{v}=F_{v} *\left(\frac{1}{\left(1+i_{e}\right)^{t}}\right)
\]
Reference(s)
Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 2, Page: 49.