Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Calculating theoretical Present Value
The example from the following website: Investopedia - Calculating The Present And Future Value Of Annuities  specifically the section 'Calculating the Present Value of an Annuity Due' shows how the calculation is made.  Using their figures, if five payments of $1000 are made over five years and depreciation (inflation) is 5%, the present value is $4545.95  There is also a formula for this summation, (ref. finance formulas)