Time value of money is the concept that receiving a cashflow today is worth more than...

 

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Time value of money is the concept that receiving a cashflow today is worth more than receiving the same amount at a future date. We can compare cashflows of differing time values by calculating and comparing their present values. Recall that the formula to calculate the present value of a cashflow CF at time t assuming annual compounding at rate r is: Compute the present value of a cashflow based on the inputs below. Check that your answer should be approximately $90.70. PV = CF (1+r)' Time value of money is the concept that receiving a cashflow today is worth more than receiving the same amount at a future date. We can compare cashflows of differing time values by calculating and comparing their present values. Recall that the formula to calculate the present value of a cashflow CF at time t assuming annual compounding at rate r is: Compute the present value of a cashflow based on the inputs below. Check that your answer should be approximately $90.70. PV = CF (1+r)'

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Okay lets solve this stepbystep Cashflow CF 100 Time t 2 years Intere... View the full answer