Present value of future sum

Input(s)

$i_{e}$: Effective Interest or Discount Rate Fraction (fraction)

$\mathrm{t}$: Time (year)

$F_{v}$: Future Sum Received at Time $t$ (currency unit)

Output(s)

$P_{v}$: Present Value of Future Sum (currency unit)

Formula(s)

$$ P_{v}=F_{v} *\left(\frac{1}{\left(1+i_{e}\right)^{t}}\right) $$

Reference(s)

Mian, M. A. 2011. Project Economics and Decision Analysis Volume 1: Deterministic Models, Second Edition. Tulsa, Oklahoma: PennWell Corporation. Chapter 2, Page: 49.