Work out uniform series present worth instantly with clear inputs, formula shown and shareable results.
The uniform series present worth factor (P/A) is the present value of one currency unit received each year for n years. It is the workhorse factor for valuing level cash flows such as savings from an efficiency project.
P/A factor
P/A = (1 - (1+r)^-n) / r
As n grows it tends to 1/r, the perpetuity factor — at 7% no level stream is worth more than about 14.3 years of payments.
Yes, P/A and A/P are exact reciprocals of each other.