Cash flows: Inflow and outflow movement of cash is known as Cash flows. Cash flows are the expected cash to be generated by an asset, investment or business. There are two types of cash flows, namely
Present Value: Present value is that value of money which measures the worth of a future amount in today’s value adjusted for interest and inflation. It is used in finance for the valuation of future value, stock and
Interest Rates: Interest is the amount charged by a lender from a borrower. It is charged in the form of a percentage of the principal amount loaned known as the Interest Rate
To Describe: The dependency of present value and future value formulas upon the cash flows which occur at normal intervals.
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Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
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