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Present Value
The current value of a future sum of money or stream of cash flows, discounted at a specified rate of return.
Present Value
The current worth of a future sum of money or stream of cash flows, given a specified rate of return or discount rate.
Discounting
The process of determining the present value of future cash flows by applying a discount rate.
Compounding
The process in which the value of an investment increases because the earnings on an investment, both capital, and interest, earn interest as time passes.
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