Present Value of a series Present value of a stream of future amounts (FVI received at the end of each period for n periods FV FV PV 2 n +.,+ 1+i)(1+i)2(1+i) Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Present Value of a Series • Present value of a stream of future amounts (FVt ) received at the end of each period for “n” periods: ( ) ( ) ( ) PV FV i FV i FV i n = n + + + + + + 1 1 2 2 1 1 1