The present value equals the dividend divided by the discount factor, which in the first row will simply equal the current dividend. For the second row, calculate the year by adding 1 to the ...

To calculate the present value of any cash flow, you need the formula below: Present value = Expected Cash Flow ÷ (1+Discount Rate)^Number of periods Thus, for year one, the math would look like ...

Since an annuity’s present value depends on how much money you expect to receive in the future, you should keep the time value of money in mind when calculating the present value of your annuity.

This Technology Workshop illustrates how to leverage a number of functions to perform calculations in Excel involving the time value of money.

The present value equals the dividend divided by the discount factor, which in the first row will simply equal the current dividend. For the second row, calculate the year by adding 1 to the ...