Present Value of a Single Cash Flow

This video explains how to calculate the present value of a single cash flow. The formula for calculating the present value of a single cash flow is presented and illustrated through examples.
-
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
-
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* eepurl.com/dIaa5z
-
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
-
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* edspira.thinkific.com
-
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: podcasts.apple.com/us/podcast...
* Spotify: open.spotify.com/show/4WaNTqV...
* Website: www.edspira.com/podcast-2/
-
GET TAX TIPS ON TIKTOK
* / prof_mclaughlin
-
ACCESS INDEX OF VIDEOS
* www.edspira.com/index
-
CONNECT WITH EDSPIRA
* Facebook: / edspira
* Instagram: / edspiradotcom
* LinkedIn: / edspira
-
CONNECT WITH MICHAEL
* Twitter: / prof_mclaughlin
* LinkedIn: / prof-michael-mclaughlin
-
ABOUT EDSPIRA AND ITS CREATOR
* www.edspira.com/about/
* michaelmclaughlin.com

[@MoreThanFoodChannel]

excellent explanation - way better than any professor so far at school

[@essamal-rahmani5703]

Teacher, you are amazing I swear, I wish to have a teacher like you.

[@Edspira]

😀

[@harmankardon478]

This is great stuff!! much better than the content provided by my university. I'm studying corporate finance and currently watching your entire CF series.. Thankyou!!!

[@Edspira]

Happy to help!

[@1ceman85]

God bless you, Michael. Seriously.

[@Edspira]

Thank you for the kind words!

[@leiracines8385]

Thank you very much for breaking it down in the simplest way possible. Very easy to understand and memorable.

[@Raqeeb1989]

Thank You so much sir.....It helps me a lot ........ Thank You again

[@himanshujoshi2970]

Well it's simple to understand, thanks for sharing your knowledge.

[@Edspira]

No problem. Best of luck in your studies!

[@daudenphiri3462]

Thanks for this service I am certain that I am gonna ace my finance exam👏👏

[@nancyallon7941]

you explain better than my teacher

[@DucksDeLucks]

Very clear!

[@sdiptanil]

Amazing video Edspira, really no need to attend physical classes :-)

[@Edspira]

Thank you Diptanil! That's the main goal behind these videos. Free business education for all :)

[@beas2761]

thank you very much, it helps me a lot!

[@dyrocide1737]

you deserve smashes of likes and subs

[@aahanadavesharma3610]

Awesome video edspira !!! i understood everything but will you please let me know how can i calculate power 10 on calculator to get $ 61.39? please help.. thanks in advance ...

[@syaminekhairy3682]

thankiu for sharing your knowledge :D

[@JoeBuza]

Very clear. Thank you

[@samprime3180]

well, i have confusion about, what if we have compounding quarterly in this one year period. Please explain. Thanks

[@mbrabonza]

Thank you so very very much!

[@aahanadavesharma3610]

Edspira, this is call present value of future cash flow? because i am confuse with single cash flow ..please let me knw

[@nanlatona7472]

Thank you so much!

[@arckimede2204]

Nice video, thank you🙏

[@Edspira]

Welcome 👍

[@16ft2in]

I very nice explanation, though over simplified. The Labor Department’s Bureau of Labor Statistics (BLS)’s official “annual” running average release in July, 2022 was 8.5% for the CPI, or consumer price index due to inflation. Shouldn’t the future value of today’s cash be calculated FIRST; BEFORE calculating the OPPORTUNITY LOSS versus expected rate of return for an investment? 5% doesn’t even keep pace with cost of living!

[@khalilfuller4939]

2:35 , you funny for that one

[@Unknowledgeable1]

What can we even do to get a guaranteed 5% return on investment per year? What pays 5% p.a. in real life?

[@invictusgaming3622]

is there to watch these in the correct order?

[@Edspira]

Yes, there's a playlist on KZbin. Alternatively, you can see all the videos for Financial Accounting here: www.edspira.com/index-financial-accounting/ (Appendix A - Time Value of Money)

[@jakejakobz]

you got a short term memory here? R is 5% loooooooool 2:37

[@LadyP964]

How do you arrive at $61.39. what are you dividing or multiplying? that part I do not understand

[@heatherd.9490]

You would multiply 1.05 ten times: 1.05x1.05x1.05x1.05x1.05x1.05x1.05x1.05x1.05x1.05= 1.6288946267774 (100 divided by that number equals the $61.39)

[@marcgarcia5721]

Chef John?

[@Unknowledgeable1]

Using the info in previous video... FV = C x (1+r)^t Substitution of appropriate values... FV = 100 C = ? (This time we don't know. And C represents the present value of a future amount of cash) R = 5% (which is 0.05) T = 1 100 = C x 1.05 Therefore C = 100/1.05

[@kavanpuranik98]

I tried using this concept to calculate how much the present value has to be for me to get 1,000,000 dollars in 10 years with an interest rate of 4%, I got 675,564.1688. Did I go wrong somewhere?