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Cherrymaenagalgo
Answered

How fair market value of cash flow stream with annuity help you decide a single amount that represents the economic substitute for a payment stream? ​

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Addisontimgo

Answer:

Present value factor ( PVF ) (also called present value interest factor ( PVIF )) is the equivalent value today of $1 in future or a series of $1 in future.

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Formula.

PVF of an Annuity = 1 − (1 + r/m)-(n×m)

r/m

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