Chapter 6 - Discounting and Accumulating
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4 Terms
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Present Value of a series of Discrete Payments
The sum of the individual present values.
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Present Value of a Continuous Payments
Calculated by integrating the rate of payment multiplied by a discount factor.
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Net Present Value
The difference between the value of the positive cashflows and the value of the negative cashflows.
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Initial Capital invested
The present value of the income plus the present value of the returned capital.
Note 
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