Hi, Can anyone tell me how to calculate present value of Cah Flow for
indefinite period. Say Rs 1000.oo to be received from 5th year onwards at the discounted rate of 12%.
CA DEEPAK RAMAN (CA FInal) (386 Points)
29 December 2011Hi, Can anyone tell me how to calculate present value of Cah Flow for
indefinite period. Say Rs 1000.oo to be received from 5th year onwards at the discounted rate of 12%.
Yogesh Bhandari
(CA FINAL Student)
(429 Points)
Replied 29 December 2011
present value at the beginning of 5th year= 1000/.12=8333.33 (for indefinite period)
present value at beginning of 1st year of this amount= 8333.33/(1+.12)4 =5296 (approx.)
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