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TB MC Qu . 2 - 2 Present value is defined as: Present value is defined as: Multiple Choice future cash flows discounted to the

TB MC Qu

. 2 - 2

Present value is defined as:

Multiple Choice

future cash flows discounted to the present by an appropriate discount rate.

inverse of future cash flows.

present cash flows compounded into the future.

future cash flows multiplied by the factor

(1 + r)^{t} .

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