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.
Answer and Explanation: 1
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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Learn more about this topic:
fromChapter 5 / Lesson 20
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.