The Present Value (PV) of a Stream of Cash Flows

question 4

True/False

The present value (PV) of a stream of cash flows is just the sum of the present values of each individual cash flow.

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Definitions:

Percent Increase

The ratio, expressed as a percentage, by which a quantity increases relative to its original value.

Net Income

The amount of money left after all expenses, including taxes and costs, are subtracted from total revenues.

Increase

A rise or growth in numbers, value, or amount.

Population

The total number of people inhabiting a particular area or country.