Copyright (c) Christopher Makler / econgraphs.org

Net present value


Year
Free Cash Flow
Present Value
0
x_0 = {{ params.x0 | number:0 }}
1
\frac{x_1}{1 + r} = \frac{ {{ params.x1 }} }{ 1 + {{ params.r*0.01 | number:3 }} } = {{ model.presentFlowValue(1) | number : 0 }}
2
\frac{x_2}{(1 + r)^2} = \frac{ {{ params.x2 }} }{ (1 + {{ params.r*0.01 | number:3 }})^2 } = {{ model.presentFlowValue(2) | number : 0 }}
3
\frac{x_3}{(1 + r)^3} = \frac{ {{ params.x3 }} }{ (1 + {{ params.r*0.01 | number:3 }})^3 } = {{ model.presentFlowValue(3) | number : 0 }}
4
\frac{x_4}{(1 + r)^4} = \frac{ {{ params.x4 }} }{ (1 + {{ params.r*0.01 | number:3 }})^4 } = {{ model.presentFlowValue(4) | number : 0 }}
5
\frac{x_5}{(1 + r)^5} = \frac{ {{ params.x5 }} }{ (1 + {{ params.r*0.01 | number:3 }})^5 } = {{ model.presentFlowValue(5) | number : 0 }}

Net present value:
{{ model.presentFlowValue(0) | number : 0 }} + {{ model.presentFlowValue(1) | number : 0 }} + {{ model.presentFlowValue(2) | number : 0 }} + {{ model.presentFlowValue(3) | number : 0 }} + {{ model.presentFlowValue(4) | number : 0 }} + {{ model.presentFlowValue(5) | number : 0 }} = {{ model.presentValue(params.r) | number : 0 }}