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What effect does increasing the required return have on the present value of a future amount? Why? How are present value and future value calculations
- What effect does increasing the required return have on the present value of a future amount? Why?
- How are present value and future value calculations related?
- What is the difference between an ordinary annuity and an annuity due? Which is more valuable? Why?
- What are the most efficient way to calculate the present value of an ordinary annuity?
- How can the formula for the future value of an annuity be modified to find the future value of an annuity due?
- How can the formula for the present value of an ordinary annuity be modified to find the present value of an annuity due?
- What is a perpetuity? Why is the present value of a perpetuity equal to the annual cash payment divided by the interest rate?
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