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present value
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present value

See net present value.



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We can now use this discount rate to calculate the present values for each year (see panel 5).
the financing view of the balance sheet, expresses the value of the firm as the sum of the equity and debt present values.
Consequently, the present values associated with (i), (ii), and (iii) all refer to a common time point, whereas the CLV associated with (iv) refers to a present value at a time point one period later.
 
 
 
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