Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337671989
Author: WINSTON
Publisher: Cengage
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Chapter 2.7, Problem 19P
Summary Introduction

To calculate: The net present value and discount it back to the discount rate using the XNPV function.

Time value of money (TVM):

It is an idea which states that the money existing at a particular time will be worth more than the matching sum in future due to the prospective earning capacity of the money. It is sometimes also referred to as the present discounted value.

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