Nature, Importance, and Use of Present Value
Several variables affect present value of future cash flows. These variables require careful evaluation to ensure reasonable certainty and accuracy. Present values are used in many investing or financing decisions and provide important basis for comparison of alternatives.
Lesson Objectives
At the end of this lesson, you shall be able to:
- Appreciate the reason for bringing money values to the same moment in time
- Know the other aspects of present value calculation
- Know the other considerations in relation to present values
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