Spreadsheet functions used to calculate the present value of multiple cash flows assume, by default, that all cash flows occur at the _______ of the period.

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05-09-2022
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Spreadsheet functions used to calculate the present value of multiple cash flows assume, by default, that all cash flows occur at the _______ of the period.

Sagot :

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Tundexiidn Tundexiidn · Answer 1 · 2022-09-08T06:18:30-04:00

The spreadsheet functions used to calculate the present value of multiple cash flows assume that all cash flows occur at the end of the period.

What is a present value?

It refers to the current value of a future sum of money or stream of cash flows given a specified rate of return.

The future cash flows are to be discounted at the discount rate and the higher the discount rate, the lower the present value of the future cash flows.

In conclusion, the spreadsheet functions used to calculate the present value of multiple cash flows assume that all cash flows occur at the end of the period.

Sagot :

What is a present value?

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