PP Presentation
We can calculate PDV as follows:
PDV = (B0-C0)/(1+d)^0 + (B1-C1) /(1+d)^1 + … + (Bn-Cn)/(1+d)^n
where:
C = cost in a given time period,
B = benefit in a given time period,
d = discount rate,
n = the "life" of the project in years.
B0 = B in time period 0;
(1+d)^n means that the value(1+d) is taken to the nth power.