What is fv of a single present cash flow, Financial Management

Assignment Help:

Q. What is FV of a Single Present Cash Flow?

the future value of a single cash flow is defined in term of equation as follows: FV = PV (1 + r)n Where, FV = Future value PV = Present value (given) .r = % Rate of interest, and n = Time gap after which FV is to be ascertained.

The above equation explains that the FV depends upon the combination of three variables i.e. the PV, the r, and the n. If anyone of these three variables changes, the FV will also change. There can be an almost infinite number of combinations of these three variables and therefore there can be corresponding infinite number of FVs. For example, one may be interested to find out then FV of Rs. 1,000 at 10% after 7 years or of Rs. 5,000 at 11% after 9 years or Rs. 50,000 at 16% after 3 years and so on. Every time the tedious calculations as per Equation are to be to find out the future value.


Related Discussions:- What is fv of a single present cash flow

Classification of budgets, CLASSIFICATION OF BUDGETS Budgets can be ca...

CLASSIFICATION OF BUDGETS Budgets can be categorized on the basis of several bases.  There are three important bases for classifying budgets.  They are - functions, time, and

Define depreciation expense, Define depreciation expense as it appears on t...

Define depreciation expense as it appears on the income statement. How does depreciation affect cash flow? The term accounting depreciation is the allocation of an asset's init

Bonds with embedded put options, Put option is the right of the inves...

Put option is the right of the investor which he may exercise on the date at the put price given in the indenture. Normally, put price is in par value. When yield rises

Definition of financial leverage, Q. Definition of financial leverage? ...

Q. Definition of financial leverage? One of the goals of planning an appropriate capital structure is to maximize the return on equity shareholders fund or else maximize the ea

Collateralized mortgage obligations (cmos), Collateralized Mo...

Collateralized Mortgage Obligations (CMOs) CMOs retain many of the yield and credit quality advantages of pass-throughs, while eliminating some of the

Yield to put, Yield to put is the rate at which the present val...

Yield to put is the rate at which the present value of cash flow to the first put date is equal to the price plus interest rate. It is used for

Case let, Which type of financing is appropriate to each firm

Which type of financing is appropriate to each firm

Financial evaluation and decision making, Financial Evaluation and Decision...

Financial Evaluation and Decision Making: The final major element of financial management is the evaluation of the information provided through the accounting and budget proces

Financial and strategic analysis, Evaluate the firm’s financial standing fo...

Evaluate the firm’s financial standing for the past 5 years: • Undertake a financial and strategic analysis of its performance: o Use the Assignment Questions for guidance ON

Find out wacc, Directions: Use the information below to calculate the WACC...

Directions: Use the information below to calculate the WACC and its components for Hawk Corp. WACC= (%CE)(cost of CE) + (%PE)(cost of PE) + (%D)(cost of D)(1-T)

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd