Present Value with Even Cash Flows- Annuity Due
Present value with even cash flows or annuity will be deposited or invested today with appropriate discount rate, and after that different even cash flows or annuity will be received during more than one period.
The cash flows due occur at the beginning of the each period.
Time Line
Which:
- PVAD: present value annuity due
- PVAF(r,t)= [1-1/(1+r)t]/r : present value annuity factor
- C: annuity