8.2 This value, 221.08 million, is 1.13 times as great as the value in Table 8-1 because...

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8.2 This value, 221.08 million, is 1.13 times as great as the value in Table 8-1 because each cash flow is discounted for one fewer period. The Excel NPV function assumes the first cash flow comes after one period. In this example, the first cash flow actually comes immediately.

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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