Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
9th Edition
ISBN: 9781259277214
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 4.2, Problem 4.2BCQ
Summary Introduction

To discuss: The opposite of discounting the cash flows to be received in the future back to the present.

Introduction:

The value of dollar at present will not be the same as the value of dollar earned in the future. The value of money deteriorates as the years pass by. Hence, the present value of money is different from the future value of money.

The present value of money helps in calculating the present value of future cash receipts. The future value of money refers to the amount of dollars that an investment grows over a definite period at a particular rate of interest rate.

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Essentials of Corporate Finance (Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)

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