question archive What is the present value of a single cash flow received 6 years from now? The cash flow is $2,000,000 and the discount rate is 12%
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What is the present value of a single cash flow received 6 years from now? The cash flow is $2,000,000 and the discount rate is 12%.
Present Value of Single Cash Flow = Amount / (1 + Discount Rate)^Years
Present Value of Single Cash Flow = 2000000 / 1.12^6
Present Value of Single Cash Flow = 2000000 / 1.9738
Present Value of Single Cash Flow = $1013262.24