Structured Settlement – Present Value of Multiple Cash Flows– Version 11/2000

A structured settlement is the payment of money in connection with a legal claim. This settlement calls for at least part of the money to be paid through a future cash flow. This calculator allows one to make a comparison between the value of the structured settlement (future) payments and a present day lump sum payments. A structured settlement can result from a legal action or may be voluntary as a pre-trial settlement. This calculator accommodates up to five different cash flows and assumes beginning of period annual payments.

Data Entry:

The data entry is to be repeated for any of the (up to) five cash flows that will be used each calculation.

Cash Flow Recipient: Enter the names of those to receive the settlement payments.

Current Year: Enter the current year.

Year # to Start Payout: The calculator accommodates up to 70 years. Indicate in this cell in which year the first payment will occur (assuming the current year is # 1).

Yrs. Of Payments: Indicate in this cell the number of years that the payments will continue.

Today’s $ Annual Payout: Enter the dollar amount for each future payment in today’s dollars. Enter $0 in this cell for any columns you will not be using.

Inflation Assumption: Enter the annual increase that will be applied to each successive payment.

Discount Rate: Enter the appropriate discount rate. This is used in the calculation of the present value of the future cash flow.

This calculator can also be used assist in comparing the value of future cash flow with a possible current day lump sum payment.