How To Calculate Present Value Formula (Finance) 💰

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It's part 1 of a course sneak peek! In our DCF Valuation Modeling course, our expert instructors break down must-know formulas like Time Quantity of Money. Stay tuned for part 2 to learn more about financial equations anyone in investment banking, private equity, valuation, or equity research must know. 📈

Understanding the Present Value Formula is crucial in finance! Here’s a quick breakdown: Take your future value and divide by (1 + r)^n to find today’s worth of future cash flows. The “r” stands for the discount rate, and the “n” represents the time period. This calculation is fundamental for valuing long-term financial decisions! 💼

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