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Tuesday, November 22, 2011

NFV stands for Net future value

Time Value Of Money

NFV stands  for Net future value 
You may be able to calculate the future value of an Unbalanced cash flow using your financial calculator. If your calculator has a button labeled NFV (net future value), you can enter individual cash flow , enter the interest rate ,and press The NFV button.
NFV=NPV(1+i)n
However , if your calculator does not have a net future value button , you can still user the calculator. To do so ,first find the net present value of the cash flow series. Then, multiply the net present value by one plus i raised to the power of n,with n representing the number of years until series matures.


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