Question
In which of the following situations would it not be appropriate to use the following formula: PV= Co + C/(1+r) + C/(1+r)- +... +C/(1+r)
In which of the following situations would it not be appropriate to use the following formula: PV= Co + C/(1+r) + C/(1+r)- +... +C/(1+r) when determining the present value (PV) of a cash flow stream?
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The formula you provided is the general formula for calculating the present value PV of a cash flow stream also known as the discounted cash flow DCF ...Get Instant Access to Expert-Tailored Solutions
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