Themajorformulasforpresentvalue(thesewill.docVIP

The Major Formulas for Present Value (these will reappear again and again): Present Value formulas (these are used in calculating project values, IRRs, and equivalent annual costs): PVP (Present Value of a Perpetuity): PVGP (Present Value of a Growing Perpetuity): PVA (Present Value of an Annuity): PVGA (Present Value of a Growing Annuity): Compounding (only use when there is compounding mentioned in the problem, e.g. pay {receive} interest rate X, compounded monthly): Discrete period compounding: Continuous compounding: Inflation Rates: (1 + rreal)(1 + inflation) = (1 +