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What is the meaning of a "closed" universe?
Present Value
The monetary valuation presently of a future sum of money or ongoing cash flows, considering a predetermined rate of return.
Interest Rate
The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, typically on an annual basis.
Discount Rate
Within DCF analysis, it's the rate employed to compute the present economic value of expected future cash inflows.
Present Value
The current value of a future sum of money or stream of cash flows, discounted at a specific interest rate.
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