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In the equation to calculate the present value of a stream of cash flows, what does the subscript O refer to when attached to
In the equation to calculate the present value of a stream of cash flows, what does the subscript O refer to when attached to PV? The subscript 0 indicates the discount rate. The subscript 0 refers to the cash flow at each time period. PV CF1 (1+r) + CF2 (1+r) CFn +.. (1+r)" The subscript 0 indicates division. The subscript 0 indicates the present time. The subscript 0 indicates multiplication.
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
3rd Edition
013350767X, 978-0133507676
