The Time Value of Money
In: An Introduction To Accounting And Managerial Finance A Merger of Equals
AbstractThe following sections are included:Time DiscountingThe Interest RateFuture ValueTime Indifference: Present ValuePresent Value of an AnnuityAn AnnuityPresent Value of a PerpetuityA Flexible ToolAnnual Equivalent AmountsConclusionsReview ProblemsQuestions and ProblemsAppendix 2.1: The Derivation of an Annuity Formula
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