Examlex
What should you record once it has been determined that the PV system is working properly, and why?
Initial Principal
The original sum of money borrowed in a loan or invested, before any interest or profit is added.
Reinvested
The act of using dividends, interest, or any form of returns to purchase additional shares or assets rather than taking cash.
Present Value
The current financial evaluation of receiving a sum of money or series of payments in the future, discounted by a pre-determined return rate.
Discount Rate
The interest rate used to discount future cash flows to their present value, often used in capital budgeting.
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