Financial Modeling
Time Value of Money: Future Value, Present Value, Annuity, Perpetuity
We know that money has two general purposes: it serves as a store of value and as a medium of exchange. The term time value of money refers to all aspects of converting the value of cash flows at one point of time to their equivalent values at another time. It is important that we know the value of current and future cash flows to facilitate the financial planning process.
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