Economics of Money, Banking and Financial Markets, The, Business School Edition (5th Edition) (What's New in Economics)
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Chapter 7, Problem 1Q
To determine

The basic principle of finance can be applied to the valuation of any investment

Concept Introduction:

The basic principle of finance is Present Value. It is the current value of a future income at different time interval. In the valuation of investment asset, the present value pf future income is used.

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