Question

In: Economics

Write down the equation describing future capital as a function of current capital and investment. What...

Write down the equation describing future capital as a function of current capital and investment. What do each of the letters stand for?

Solutions

Expert Solution

NPV = F / [ (1+r)^n]

Where,

PV is Present value

F is Future payment (cash flow )

R is rate of discount

N is number of periods in future.


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