Time Value of Money

Present Value with Supernormal Growth Rate Time Line Which Ct+1  = Ct(1+g)1 Ct+2  = Ct(1+g)2 Ct+3 = Ct(1+g)2  

Present Value with the Two-Stage Growth Rate This model assumes the future cash flows will grow at different rates for

Present Value with Constant Perpetual Growth Rate Present value with constant perpetual growth rate is often applied to find present

Present Value with Constant Growth Rate Present value with constant growth rate is often applied to find present value or

Present Value of Perpetuity Due The word perpetuity is an annuity in which the cash flows continue forever. The cash

 Present Value with Ordinary Perpetuity The word perpetuity is an annuity in which the cash flows continue forever. The ordinary cash flows

Present Value with Even Cash Flows- Annuity Due Present value with even cash flows or annuity will be deposited or

Present Value with Even Cash Flows- Ordinary Annuity Present value with even cash flows or annuity will be deposited or

Present Value with Uneven Cash Flows-Present Value Due Present value with uneven cash flows will be deposited or invested today

Present Value with Uneven Cash Flows-Ordinary Present Value Present value with uneven cash flows will be deposited or invested today