a. What do we mean by the present value of an investment? b. The process of discounting

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a. What do we mean by the present value of an investment?
b. The process of discounting a future amount back to the present is the opposite of doing what?
c. What do we mean by discounted cash flow, or DCF, valuation?
d. In general, what is the present value of $1 to be received in t periods, assuming a discount rate of r per period?

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Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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