Value of a Cash Flow Stream

We refer to a series of cash flows lasting several periods as a stream of cash flows.

The present value of the cash flow stream is the sum of the present values of each cash flow:

$$PV=C_0+\frac{C_1}{1+r}+\frac{C_2}{(1+r{)}^2}+\dots \frac{C_N}{(1+r{)}^N}$$