How Can You Calculate the Y-Intercept of a Net Present

question 5

Essay

How can you calculate the y-intercept of a net present value (NPV) profile without using TVM concepts?

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Definitions:

Term Deposits

Fixed-term savings accounts that typically offer higher interest rates, where money is locked in for a certain period.

Surplus Funds

Excess money or assets that remain after all expenses have been paid.

Maturing

The process by which a financial instrument reaches its due date and the principal is required to be repaid.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the principal.