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3 Cards in this Set
- Front
- Back
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Time Value
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The equivalence relationship between cash flows occurring on different dates.
Determining the equivalent value of a dollar today at some target future date. |
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Interest Rate (r)
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The minimum rate of return an investor must receive in order to accept the investment.
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Discount Rate
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The rate at which we discount a future amount to find its value today.
Often used as another way of describing interest rate. |
