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Distinguish between the present value factor and the annuity present value factor?

Question:

Distinguish between the present value factor and the annuity present value factor?

Time Value of Money:

Time Value of Money states that money received today is more worth than money to be received in the future because we can invest the money received now and earn a return on it. We can calculate the future worth or present worth of money by compounding or discounting the cash flows.

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Differences between Present value factor and Annuity Present Value Factor.

Present Value Factor (PVF)Annuity Present Value Factor (APVF)
It is used...

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How to Calculate Net Present Value: Definition, Formula & Analysis

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Chapter 5 / Lesson 20
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Learn about what net present value is, how it is calculated both for a lump sum and for a stream of income over multiple years. View some examples on NPV.


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