Future Worth, FW(i)
The future worth, FW(i), is just like the present worth, PW(i), except that it's referenced to a future point in time. Whereas PW(i) is referenced to the beginning of the cash-flow stream, FW(i) is typically referenced to the end. FW(i) is like answering the question, “How much is this proposal worth in the end-of-the-proposal time frame?”
The formula for FW(i) is
Where Ft is the net cash-flow instance in period t.
The FW(i) formula essentially uses the single-payment compound-amount (F/P,i,n) formula to translate each individual net cash-flow instance to its corresponding end-of-cash-flow-stream amount and then sums up all ...
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