ToolBox CS
Warning
Product support for ToolBox CS ended on October 31, 2022.
Help & How-To Center content for ToolBox CS may be outdated and is used at your own risk.
This calculator computes the present value of a series of irregular or unequal payments received in the future.
Example
If an investor projects receiving a cash flow from a business into the future, he can place a value on that business today. If he expects the business will lose about $10,000 this year, then make $20,000 the second year with a 10% increase each subsequent year until the end of the fifth year, what is the company worth today?
Note: This example assumes that there is no residual value at the end of five years.
| Field | Input |
|---|---|
| Current date | 1/1/2017 |
| Annual discount rate | 8% |
Payment Schedule
| Date | Amount |
|---|---|
| 1/1/2018 | -$10,000 |
| 1/1/2019 | $20,000 |
| 1/1/2020 | $22,000 |
| 1/1/2021 | $24,200 |
| 1/1/2022 | $26,620 |
In this example, the total of the payments received from the business would be $82,820, and the present value of those payments is $61,249.11.
Note: This total present value is also the value of the investment.
Working in the input grid
- To insert a row, right-click in the row BEFORE which you want the new row to appear, and choose Insert Row. You can also insert an entry between two existing rows in the table by adding the row at the bottom of the table. The application will sort it based on date.
- To delete a row, right-click in the row you want to delete and choose Delete Row.
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