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Physical Variables Sometimes we cannot remove physical variables and it is impractical to hold them steady.In these cases, we can control them using
Principal
The original sum of money borrowed in a loan, or the amount of the investment, excluding any interest or growth.
Present Value
The present value of an anticipated sum of money or series of cash flows, considering a certain return rate.
Discounting
The process of determining the present value of a payment or a stream of payments that will be received in the future.
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