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Explain why cash flows occurring at different times must be adjusted to reflect their value as of a common date before they can be compared,
- Explain why cash flows occurring at different times must be adjusted to reflect their value as of a common date before they can be compared, and be able to calculate the present value and future value for problems with multiple cash flows.
- Explain how an ordinary annuity differs from an annuity due and be able to calculate the present value and the future value of an ordinary annuity and annuity due.
- Explain what a perpetuity is and where we see them in business and be able to calculate the value of a perpetuity.
- Explain what are growing annuities and perpetuities, as well as their applications in business, and be able to calculate the present value and future value of growing annuities and the present value of perpetuities.
- Explain the concept of the effective annual interest rate (EAR) and be able to calculate the EAR.
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Foundations Of Financial Management
Authors: Stanley B Block, Geoffrey A Hirt
12th Edition
0073295817, 9780073295817
