present value tables

present value tables

tables which are used in INVESTMENT APPRAISAL undertaken by means of DISCOUNTED CASH FLOW. The tables show how much we need to invest now, at a certain rate of interest and for a particular period of time, to produce £1. For example, the tables show that if we want to produce £1 in 5 years' time at 10%, we will need to invest £0.621 now. Alternatively, the tables show that £1 receivable in 5 years' time, taking into account a rate of interest 10%, will be worth only 62p (that is, £0.621).
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