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%.
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Calculation of present value
Replies (2)
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.)
Thank u for the prompt reply
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