2.3 Cal Present or Future Value of a Variety of Cash Flow ...

future values, since it specifies the amount I expect to receive at some future date. Present Value. Present value is just the inverse of future value. It translates future values into today’s prices. Using equation (1): (2) PV(0) = FV(n)/ (1+r)n or = FV(n) (1/ (1+r)n) where 1/(1+r)n is the discount factor. ................
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