FIRST PRINCIPLES OF VALUATION

The Present Value of a series of t cash flows, of an amount, C, at a discount rate, r, can be represented by the following equation. 1 . 1 - (1+r)t. APV = C x . r We can calculate by hand, or use the annuity tables in any financial management text to get the value of. 1 . 1 - (1+r)t ................
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