| LaTeX Math Block | ||||
|---|---|---|---|---|
| ||||
\mbox{PV}_r[CF] = \sum_{t=0}^N \frac{\mbox{CF}_t}{(1+r)^t} |
where
| total number of accounting periods (usually years) | ||||
|---|---|---|---|---|---|
| discount rate |
It also works as a A popular mechanism of quantifying the discounted value of the future Asset Market Value:
| LaTeX Math Block | ||||
|---|---|---|---|---|
| ||||
\mbox{PV} = \frac{\mbox{AMV}_n}{(1+r)^n^T} |
where
| total number of accounting periods (usually years) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| discount rate | ||||||||
| Asset Market Value at the end of the | ||||||||
| discounted value of the potential Cash proceedings from selling the Asset at the end of the |
...