Examlex
In the graph shown below, two personality types are represented as having relatively high achievement over time. The two lines that are next to each other and nearly horizontal should be labeled
Discount Rate
The rate of interest that is applied to find out the present value of cash flows predicted in the future, within the framework of discounted cash flow analysis.
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.
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