This technical note begins with an assessment of cash flows, and then enters the technique of discounted cash flows of the accumulated value of the first solution, and then the calculation of the current values. The note also addresses the net present value, internal rate of return, acceptable and effective interest rate compared to the nominal rate of return. In addition, the note describes the flows in perpetuity and conditions when pre-tax analysis are appropriate.
This Darden study. "Hide
by Sherwood C. Frey Source: Darden School of Business 17 pages. Publication Date: February 24, 1997. Prod. #: UV0682-PDF-ENG