## The future value, FV , of a series of cash flows is the future value, at future time N (total periods in the future), of the sum of the future values of all cash flows, CF.

Determining the appropriate discount rate is the key to valuing future cash flows properly, whether

How to Determine Future Value of Cash Flows. Cash flows are one-time or periodic inflows of money, such as dividends, or outflows, such as tuition expenses. 21 Jun 2019 Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they be earnings or obligations. Calculate the future value (FV) of an investment of \$500 for a period of 3 years that pays an interest rate of 6% compounded semi-annually. FV = 500*(1+6%/2)^ (2*  Concept 1: Calculating PV and FV of Different Cash Flows. Present value is the current value of a future cash flow. Longer the time period till the future amount is   Define the present value of a series of cash flows. Define an annuity. Identify the factors you need to know to calculate the value of an annuity. Discuss the