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## The present value can be

The present value can be thought of as the equivalent amount of money that would be paid up front as a lump sum, which has the same time value of money as the cash flow in question.

For example, if I say that $2000$ will be paid to you one year from now, and the effective annual rate of interest is $i=0.1$, the present value of this payment is the amount which, if held by you over the same amount of time, would equal $2000$ at the end of one year. That is to say....

$$Present \space value (1+i)= 2000$$

or

$$Present \space value = \frac{2000}{1+0.1} = 1818.18$$

So...it means that receiving $1818.18$ now and receiving $2000$ after a year, assuming its annual interest rate is $0.1$, means the same thing.

With that in mind, the present value of cash-flow would be:

I was paid $1000$, $2000$, $3000$, $4000$ and $5000$ after now, $1$, $2$, $3$, and $4$ years, respectively. Translating into an equation, it becomes...

$$1000 + \frac{2000}{(1+0.1)^1} + \frac{3000}{(1+0.1)^2} + \frac{4000}{(1+0.1)^3} + \frac{5000}{(1+0.1)^4}$$

which equals $11717.85$

Therefore, the present value of the cash flow would be $\color{green}{11717.85}$ pesos.

Alternate solutions are highly encouraged....