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What is the intuition behind the fact that the present value of a stream of cash flows is just the sum of the present values
- What is the intuition behind the fact that the present value of a stream of cash flows is just the sum of the present values of each individual cash flow?
- What must be true about a cash flow stream in order for us to be able to use the shortcut formulas?
- What is the difference between an annuity and a perpetuity?
- What are some examples of perpetuities?
- How can a perpetuity have a finite value?
- What are some examples of annuities?
- What must be true about the growth rate in order for a growing perpetuity to have a finite value?
- In what types of situations would it be useful to solve for the number of periods or the rate of return?
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