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The Process for Calculating Present Values Is Often Called Present

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The process for calculating present values is often called present valuing cash flows.


Definitions:

Factors

Numbers or quantities that can be multiplied together to produce another number, often used in breaking down numbers into their elemental parts.

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to their smallest possible integers.

Percentage

A mathematical concept expressing a quantity as a fraction of 100.

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