Final answer:
To calculate the present value of uneven receipts, individually discount each receipt to present value using the formula PV = Future Value / (1 + i)^n, where 'i' is the interest rate and 'n' is the number of periods until receipt. Sum these present values to get the final PV. When applied to real-world company profits, divide the total PDV by the number of shares to get the price per share.
Step-by-step explanation:
To find the present value (PV) of a series of uneven receipts, one must discount each individual receipt separately to its present value and then sum these values. The formula for calculating the present discounted value (PDV) of a future amount is: PV = Future Value / (1 + i)n, where 'i' is the interest rate and 'n' is the number of periods until the receipt.
For each time period when a benefit is going to be received, apply the formula to determine its present value. Afterward, add up all the present values for the different time periods to get the final answer. If applying this to a real-world scenario, such as calculating the price per share based on company profits, the PDV of total profits must be divided by the number of shares.
As an example, taking the PDV of 51.3 million and dividing by 200 shares equals a price per share of approximately $256,500 per share.