Simulating Cash Flows
Overview
Present Value (likewise, Future Value) calculations are a calculation that takes a series of cash flows
that occur at different times and returns a single number , the value of those cash flows at a given
time. In essence, the calculation assumes there is a risk free bank that can freely lend or borrow
money at the risk free rate, and determines given such a bank, how much money are the cah flows worth at any given
time.
Topics
