Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9781259870576
Author: Ross
Publisher: MCG
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Chapter 5, Problem 1CRCT
Summary Introduction

To discuss: The four parts of present value equation

Introduction:

Present value refers to the current worth of the future cash inflows after discounting with a discount rate. The present value helps to understand the amount that needs to be invested at present to obtain a predetermined amount of future cash flow.

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