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CHAPTER 5 Time Value of Money

Time lines. The time line is the graphical representation used to show the timing of cash flows. . CF0. CF1. CF3. . . . . . CF2. 0. 1. 2. 3. I%. I. future value (FV). Future value: the amount to which a cash flow or series of cash flows grow over a given period based on a given interest rate.EX: F

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CHAPTER 5 Time Value of Money

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