Question 1

What should I use as the discount rate?

Accepted Answer

Discount rate choices depend on context such as opportunity cost, risk, and required return. Use a rate consistent with your decision goals.

Question 2

Does this handle multiple cash flows?

Accepted Answer

This version is for a single future amount. For multiple payments, sum the present value of each cash flow separately.

Question 3

Why does discounting matter?

Accepted Answer

Because money today can be invested. Discounting reflects the time value of money and opportunity cost.

Present Value Calculator

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