Using these annual PVFs and an annual end-of-the-year positive net cash flow of $100,000, the PV of each of the cash flows over the three year period would be calculated as:

Thus, given an interest or discount rate of 10%, were one to consider $1,000 of savings in Year 10 as equivalent to $1,000 in the present, conclusions drawn from the analysis would be erroneous. Conversely, the FV of a present sum of money (PV) over n periods at an interest rate i per period would be calculated as:


Guide to Alternative Fuels

Guide to Alternative Fuels

Your Alternative Fuel Solution for Saving Money, Reducing Oil Dependency, and Helping the Planet. Ethanol is an alternative to gasoline. The use of ethanol has been demonstrated to reduce greenhouse emissions slightly as compared to gasoline. Through this ebook, you are going to learn what you will need to know why choosing an alternative fuel may benefit you and your future.

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