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Calculation of Present Value

Calculation of Present Value. Farrokh Alemi, Ph.D. Present Value. “Show Me the Cash”. Years before receiving the cash. Interest rate or opportunity cost of investment. Example of Present Value. Interest rate. Years till return.

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Calculation of Present Value

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  1. Calculation of Present Value Farrokh Alemi, Ph.D.

  2. Present Value

  3. “Show Me the Cash” Years before receiving the cash Interest rateor opportunity cost of investment

  4. Example of Present Value Interest rate Years till return If we assume a 6% interest rate, receiving $1,000 in 5 Years is worth $747 today.

  5. Present Value of IT Costs Assume 6% Interest Rate or 0.06

  6. Present Value of IT Costs Shows returns in each year

  7. Present Value of IT Costs

  8. Present Value of IT Costs

  9. Present Value of IT Costs

  10. Present Value of IT Costs

  11. Present Value of IT Costs

  12. Present Value of IT Costs

  13. Present Value of IT Costs

  14. Present Value of IT Costs Present Value of 5-year Cost of Investment $235,450,000

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