fin3 - Discounting and Valuation Discounting simply...

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Econ 333 Spring 08 1 Discounting and Valuation Discounting simply reflects the time value of money.
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Econ 333 Spring 08 2 Discounting 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
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