Which represents a step-by-step process, since you would calculate the present value of each payment individual annuity payment. This simplifies to a more condenses formula of: PVAN - PMT x 1- 1 (1+1)N I Once this present value is calculated, it then becomes more intuitive to compare an annuity to a lump sum received today, since a lump sum of cash received today is already a present value amount. However, most commonly these calculations are done in a spreadsheet or financial calculator, which you will practice in the next stage of this problem. True or False: Given the future value of a cash flow, you can calculate the present value by discounting that future cash flow