yalix bannar

Monday, October 31, 2011

Present Value of Money

Time Value Of Money
Present Value Of A Future Payment
Present value of money it’s the current value of a cash flow. Also cash flow it’s the amount you would need to invest today for the cash flow to reach its future value.
Next we have to know what is opportunity cost rate
It mean the rate of safe return that is given up to invest in an alternative investment with the possible for a greater return

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