The present value of a growing annuity calculator is used to calculate what a cash sum growing at a rate g received at the end of each period, for n periods is worth today, taking into account a discount rate i.
Last modified January 17th, 2020
Present Value
Profitability Index Calculation
The profitability index (PI) of a series of cash flows is found by calculating the present value of all the cash flows from a project (PV) and dividing the value by the initial investment (I). The profitability index is sometimes referred to as the value investment ratio.
Last modified November 18th, 2019
Present Value of a Lump Sum
Present Value of a Growing Perpetuity Formula
The present value of a growing perpetuity formula is used to calculate the present value of a series of periodic payments which increase at a constant rate each period. The payments made at the end of each period, continue forever, and have a discount rate i% is applied.
Last modified March 9th, 2023
Present Value of Annuity Formula
Present Value of a Lump Sum Formula
Present Value of a Perpetuity Formula
Present Value of a Growing Annuity Due Formula
Present Value Annuity Due Tables
Present Value Annuity Tables
Lump Sum Formula
The time value of money concept in financial management is used to compare lump sum cash flows which are received or paid at different times.
The lump sum present and future value formulas can be used to calculate the effect of time and compounding interest rates on the value of the lump sums. They are best looked at by way of example.
Last modified March 22nd, 2023
Net Present Value
The net present value (NPV) of a series of cash flows is found by calculating the present value of each cash flow at the appropriate discount rate and then adding them together.
The net present value is used to compare projects and to evaluate whether or not a project is worthwhile. It assumes that a project comprises a series of cash flows in or out of the business over a number of years.
Last modified December 3rd, 2019