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Present & Future Value Analysis

The document contains three examples of present value calculations: 1) Calculating the present value of a single cash flow of Rs. 550,000 in 8 years to be Rs. 308,386.23 with an interest rate of 7.5%. 2) Calculating the present value of uneven cash flows over 8 years totaling Rs. 2,300,000 with a discount rate of 6.2% and a net present value of Rs. -136,450.71. 3) Calculating the future value over 60 months of uneven monthly deposits with interest rates of 8.25% and 0.6875% totaling Rs. 412,406.19 and achieving a future value of Rs

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81 views4 pages

Present & Future Value Analysis

The document contains three examples of present value calculations: 1) Calculating the present value of a single cash flow of Rs. 550,000 in 8 years to be Rs. 308,386.23 with an interest rate of 7.5%. 2) Calculating the present value of uneven cash flows over 8 years totaling Rs. 2,300,000 with a discount rate of 6.2% and a net present value of Rs. -136,450.71. 3) Calculating the future value over 60 months of uneven monthly deposits with interest rates of 8.25% and 0.6875% totaling Rs. 412,406.19 and achieving a future value of Rs

Uploaded by

Prarthana M
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Present Value of Single Cash flow

FV 550,000
Time (years) 8 Present Value ₹308,386.23
Rate 0.075

Interpretation: The person should deposite ₹3,08,386.23 in order to get ₹5,50,000 in 8 years.

Present Value of Uneven Series Cash flow

Investment 2,300,000
Project Life (years) 8
Rate 0.062

Year Cash Inflows Present Value


1 220,000 ₹207,156.31
2 350,000 ₹310,326.61
3 435,000 ₹363,174.80
4 180,000 ₹141,505.86
5 540,000 ₹399,734.08
6 455,000 ₹317,149.69
7 256,000 ₹168,022.85
8 415,000 ₹256,479.09
Total PV ₹2,163,549.29
Investment 2,300,000
NPV (₹136,450.71)

Future Value of Uneven Series Cash Flow


Rate 0.0825 0.006875
Time (months) 60

Months Deposit Future Value


1 1193 ₹1,201.20
2 9840 ₹9,975.77
3 8598 ₹8,776.56
4 2203 ₹2,264.21
5 9272 ₹9,595.14
6 6944 ₹7,235.41
7 3749 ₹3,933.18
8 6366 ₹6,724.67
9 1938 ₹2,061.26
10 8190 ₹8,770.81
11 1034 ₹1,114.94
12 8707 ₹9,453.12
13 2440 ₹2,667.30
14 829 ₹912.46
15 8706 ₹9,648.33
16 9437 ₹10,530.35
17 8312 ₹9,338.78
18 6280 ₹7,104.27
19 4557 ₹5,190.56
20 2815 ₹3,228.42
21 7242 ₹8,362.68
22 5422 ₹6,304.08
23 6541 ₹7,657.41
24 7960 ₹9,382.67
25 5974 ₹7,090.13
26 7788 ₹9,306.59
27 5288 ₹6,362.55
28 2919 ₹3,536.30
29 1941 ₹2,367.65
30 8337 ₹10,239.45
31 6581 ₹8,138.31
32 6756 ₹8,412.16
33 9018 ₹11,305.86
34 3406 ₹4,299.46
35 5226 ₹6,642.23
36 8148 ₹10,427.28
37 2431 ₹3,132.42
38 4407 ₹5,717.61
39 1194 ₹1,559.74
40 3189 ₹4,194.47
41 2723 ₹3,606.16
42 7076 ₹9,435.42
43 974 ₹1,307.70
44 9988 ₹13,502.15
45 5492 ₹7,475.33
46 4908 ₹6,726.36
47 2189 ₹3,020.63
48 6887 ₹9,568.79
49 2057 ₹2,877.64
50 8995 ₹12,670.07
51 1135 ₹1,609.72
52 2233 ₹3,188.73
53 8382 ₹12,051.81
54 4099 ₹5,934.14
55 5676 ₹8,273.67
56 9639 ₹14,146.96
57 7045 ₹10,410.89
58 6885 ₹10,244.39
59 7576 ₹11,350.05
60 7186 ₹10,839.79
₹412,406.19
Future Value ₹550,000.00

in 8 years.

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