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Present Value
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The Present Value) of $1 = 1/(1+i)N where i is the interest or discount rate, and the period number is N.
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The Present Value of a series of cash flows = Sum of this series for all values from time period = 0 > n = At/(1+r)t > n
Present values calculated by Excel, when used for investment analysis, are incorrect.
This is because the PV function was incorrectly defined by someone in the past, and has never been corrected!
See the NPV page for further information and how to correct Excel PV.
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Reference Pages
NPV
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