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Annuity net flow formula
Net annuity flow = total present value of cash flow/annuity present value coefficient. Annuity net cash flow: the total present value (net present value) of all net cash flows during the project period is converted into the average net cash flow of an equivalent annuity, which is called annual NCF.

For example, the present value coefficient of a five-year annuity with an annual interest rate of 5% is 4.3295, which means that the annual investment is 1 yuan, and the investment is * * * for five years, so the investment in 5 yuan in these five years, if converted into present value, is worth 4.3295 yuan.

Because: net annuity flow = total present value of cash flow/annuity present value coefficient.

So in this example, the total present value of annuity flow is 4.3295 yuan, and the present value coefficient of annuity is 4.3295.

Then the net annuity flow =4.3295 yuan /4.3295= 1 yuan.

This 1 yuan is exactly the same as the example, and 1 yuan is invested every year.

1. Annuity refers to a series of payments received and paid at one time within a certain period of time, usually denoted by A. Annuities are in the form of insurance premium, pension, depreciation accrued under the straight-line method, rent, equal installment, equal installment, etc. Annuities have the characteristics of equality and continuity, but the interval between annuities is not necessarily one year. According to the different time and method of payment and receipt, annuities can be divided into ordinary annuity, early annuity, deferred annuity and permanent annuity.

2. At present, the problems that affect the development of enterprise annuity and occupational annuity system mainly include the imperfection of preferential tax policies for pensions, the non-mandatory enterprise annuity, the need to further broaden the scope of pension investment, and the "dual track" of pensions between enterprises and institutions. In view of these problems, the following suggestions are put forward:

1. Improve the preferential tax policies for pensions. Preferential tax policies will greatly stimulate the internal motivation of enterprises to establish pension system for employees. Drawing lessons from the experience of the United States and the successful examples of tax preferential policies in other countries, it is suggested that in the operation of enterprise annuity, the tax preferential range of enterprise payment should be appropriately increased and individual payment should be delayed. According to the calculation of relevant departments, delaying or reducing tax payment 1 yuan in the current period can establish pension funds above 20 yuan. In the short term, tax reduction on enterprise annuity may reduce the current fiscal revenue of the country, but if enterprise annuity is reinvested in the capital market, the tax revenue obtained by the country from the capital market may be far greater than the immediate tax loss. And for enterprises, preferential tax policies can encourage and stimulate enterprises to participate in the construction of old-age security for employees.

2. The pension system has gradually changed from "non-mandatory" and "semi-mandatory" to "mandatory". According to Article 16 of the State Council's Latest Opinions on Approving Deepening the Reform of Income Distribution System: "Improve the basic old-age insurance system. Promote the reform of endowment insurance system in public institutions by classification, and study and promote the reform of endowment insurance system for civil servants. Develop enterprise annuities and occupational annuities. " It can be seen that the central government has made up its mind to reform the endowment insurance system for public institutions and civil servants, and will continue to vigorously develop enterprise annuities and occupational annuities. Although the guiding spirit and top-level design already exist, it is important to speed up implementation and promotion according to policies.