Module 24 Flashcards

1
Q

interest rate

A

measures the cost of delaying $ benefits

the benefit of delaying the payment of a dollar cost

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2
Q

present value of $1 realized N years from now

A

$x = $1/(1+r)^N

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3
Q

net present value

A

present value of current and future benefits - present value of current and future costs

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