Present Value of a Series of Non-Annuity Payments
You can use this calculator to calculate the present value of a series of irregular or unequal payments received in the future.
To open this calculator, click Calculators in the toolbar, and then click Other Investment > Present Value of a Series of Non-Annuity Payments in the left panel.
You can export the data as a PDF file or clear all data that you entered. For more information, see Financial calculators.
Example
If an investor projects receiving a cash flow from a business into the future, he can place a value on that business today. If he expects the business will lose about $10,000 this year, then make $20,000 the second year with a 10% increase each subsequent year until the end of the fifth year, what is the company worth today?
Note: This example assumes that there is no residual value at the end of five years.
Field | Input |
---|---|
Current date | 1/1/2013 |
Annual discount rate | 8% |
Payment Schedule
Date | Amount |
---|---|
1/1/2014 | -$10,000 |
1/1/2015 | $20,000 |
1/1/2016 | $22,000 |
1/1/2017 | $24,200 |
1/1/2018 | $26,620 |
In this example, the total of the payments the investor receives from the business would be $82,820, and the present value of those payments is $61,245.43.
Note: This total present value is also the value of the investment.
Internal notes
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