Twa kɔ nsɛm atitiriw so

Sign up for FREE

Discounted Cash Flow (NVP)

Last updated over 1 year ago

6 Nsɛmmisa

1

Asemmisa {{asɛmmisaAhyɛnsode}}

1.

Discounted cash flow takes account of the "time value of money" in order to: _________

1

Asemmisa {{asɛmmisaAhyɛnsode}}

2.

Why might it be important to take into account the "time value of money"

1

1

1

1

Asemmisa {{asɛmmisaAhyɛnsode}}

3.

How is present value calculated?

Asemmisa {{asɛmmisaAhyɛnsode}}

4.

What is the present value is the cash flow is 20,000 and the discount factor is 0.9?

Asemmisa {{asɛmmisaAhyɛnsode}}

5.

Give 2 benefits of using NVP

Asemmisa {{asɛmmisaAhyɛnsode}}

6.

Give one drawback of using NVP and explain it