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Econ 333 Spring 081Discounting and ValuationDiscounting simply reflects the time value of money.
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Econ 333 Spring 082Discounting and Valuation•After studying this chapter you: –Should be able to compute the future value and/or the present value of a single cash flow or series of cash flows–Should be able to compute the return on an investment–Will understand the theoretical foundations of the Net Present Value (NPV) rule–Understand perpetuities and annuities