ch 5 (Time Value of Money)

ch 5 (Time Value of Money) - 5 Introduction to Valuation...

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5 Introduction to Valuation: The Time Value of Money Slide 5 - 1 Question to be Asked Suppose you are promised to be given $100 in year 0, $200 in year 1, $300 in year 2, and $400 in year 3. How about you receive $1,000 right now? Are you better off from receiving $1,000 right now? Why? This chapter discusses the time value of money, from which we determine the equivalent payment right now to receiving the money in three years.
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