Define the term Equivalence Calculations?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Define the term Equivalence Calculations?

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The equivalence calculation is the calculation which used a combination of the interest rate and the time value of the money to calculate the various sum of money at the several points of time which has the same economic value. It means the future value becomes equal to the present value of the given sum of money. Equivalence calculation doesn’t depend on how you pay.

 

 

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