# Questions tagged [present-value]

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### Discount factor to calculate MTM of FX Forward

Forward Contract e.g. Buy GBP Sell DKK Which discount factor should I use? GBP or DKK? Or both? Why? What's the rule? How to calculate the discount factor in the case above but also in general? Should ...
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### Cash Flow for Operating Cost, Sheldon Ross Question

In his An Elementary Introduction to Mathematical Finance, 3rd Edition book, pg. 55, Sheldon Ross has a question - A company needs a certain type of machine for the next five years. They ...
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1 vote
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### How to calculate the NPV (Net present Value) in this question? [closed]

A company pays £1,200,000 to purchase a property. The company pays £30,000 at the end of each of the next six months to renovate the property. At the end of the eighth month the company sells the ...
• 137
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### How to calculate interest rate in this problem?

Problem: A loan of £12,000 is issued and is repaid in instalments of £300 at the end of each month for 4 years. Calculate the effective annual rate of interest for this loan. What I tried- But ...
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1 vote
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### Value of a continuous cash flow until a random time

I am trying to compute the present value of a continuous cash flow that lasts until a random time. The rate of the cash flow is denoted by $c$ and the random time is denoted by $\tau$. Then my claim ...
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