Detailed Notes on 1300 cash
Detailed Notes on 1300 cash
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If our whole amount of durations is N, the equation for the long run value of the cash circulation collection would be the summation of specific cash flows:
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Note that due to the fact we want to know the long run benefit at the conclusion of the 7th time period, the longer term value is unchanged through the cash flow of $seven hundred. Cash Flow Stream Detail
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Hence, a 1300 cash further (1 + in) is existing in Each individual cash move multiplication. With compounding m periods for each period we arrive at in and n by environment r as the periodic amount and t since the period range to determine in = r/m and n = mt; we can easily now compute the PV starting up with the future price method
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