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CHAPTER 4 QUESTIONS 4-1 The opportunity cost rate is the rate of interest one could earn on an alternative investment with a risk equal to the risk of the investment in question.…

Documents 2-1 Future value Present value Rates of return Amortization Chapter 2 Time Value of Money.

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Slide 11 Chapter 2: Time Value of Money Future value Present value Rates of return Amortization Slide 2 2 Time lines show timing of cash flows. CF 0 CF 1 CF 3 CF 2 0123 i%…

Documents Excel Financial Functions Agenda – Discuss interest and the time value of money – Explore the...

Slide 1Excel Financial Functions Agenda – Discuss interest and the time value of money – Explore the Excel time value of money functions Slide 2 Working with Financial…

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1. Lecture # 3 1. Compounding Factors 2. Effect of Inflation 1-1 Dr. A. Alim 2. Determination of Unknown Interest Rate  Class of problems where the interest rate, i%,…

Documents Lecture # 3 compounding factors effects of inflation

1. Lecture # 3 1. Compounding Factors 2. Effect of Inflation 1-1 Dr. A. Alim 2. Determination of Unknown Interest Rate  Class of problems where the interest rate, i%,…

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Lecture # 3 1. Compounding Factors 2. Effect of Inflation 1-1 Dr. A. Alim Determination of Unknown Interest Rate  Class of problems where the interest rate, i%, is the…

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* Chapter 4 Time Value of Money * Time Value Topics Future value Present value Rates of return Amortization Value = + + + FCF1 FCF2 FCFâ (1 + WACC)1 (1 + WACC)â (1 + WACC)2…

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Slide 1Vicentiu Covrig 1 Bond Yields and Interest Rates (chapter 17) Slide 2 Vicentiu Covrig 2 Maturity: time when bond principal and all interest will be paid in full -…