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On the calculation method of present value
The formula PV = fvn/(1+I) n.

PV is the present value of compound interest, FVn is the final value of compound interest, I is the interest rate, and n is the number of interest-bearing periods.

1. The present value in accounting measurement refers to the value of future cash flows discounted at an appropriate discount rate, which is a measurement attribute considering the time value of money.

2. The amount discounted according to the expected future net cash inflow generated by the continuous use and final disposal of assets.

3. The amount of debt discounted according to the future net cash outflow to be repaid within the expected period.

4. Present value is the value of future funds discounted to the current moment at a given interest rate level, which is the inverse process of the time value of funds.

The present purchase value of 59 million yuan is 55.30140; 6. 1446 is a five-year discount factor.

6. The formula uses future cash flow * discount factor = present value.

7. When comparing and screening compound interest investment products, we also need to use several important concepts, including final value (FV), present value (PV), annuity (PMT), interest rate (I), number of periods (N) and internal rate of return (IRR). These concepts are indicators to measure specific products.

The extended data for calculating the present value of annuity in advance is divided into two steps:

1. First, convert the instant annuity into ordinary annuity for calculation. The conversion method is to assume that there is no equal revenue and expenditure amount at the beginning of the period 1, so it is converted into ordinary annuity, and the present value can be calculated according to ordinary annuity's present value formula. Note that the present value calculated in this way is the present value of ordinary annuity during the period of n-/kloc-0.

2. Make adjustments. That is, add a at the beginning of 1 period that was not calculated at first. When the formula is sorted out, that is, after A is put forward, the formula for calculating the present value of instant annuity is obtained. Risk is the uncertainty of expected results. Risk includes not only the uncertainty of negative effects, but also the uncertainty of positive effects.

The concept of risk is broader than danger, including danger, and danger is only a part of risk. The other part of the risk, that is, the positive effect, can be called "opportunity".

Baidu Encyclopedia-Present Value