Fundamentals of Corporate Finance Standard Edition
Fundamentals of Corporate Finance Standard Edition
10th Edition
ISBN: 9780078034633
Author: Stephen Ross, Randolph Westerfield, Bradford D. Jordan
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 5.2, Problem 5.2ACQ
Summary Introduction

To discuss: The meaning of present value of an investment

Introduction:

The value of dollar at present will not be the same as the value of dollar earned in the future. The value of money deteriorates as the years pass by. Hence, the present value of money is different from the future value of money. The present value of money helps in calculating the present value of future cash receipts.

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