FIRST PRINCIPLES OF VALUATION

The Future Value of an Annuity. Same principles as the APV, but it is the value at the end of t periods of a constant stream of cash flows, C, at an interest rate of r. (1+r)t - 1. The value is given by AFV = C x r (Future value annuity table gives the value of the factor to multiply times C) The Present Value … ................
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