a)
To calculate: The
Time value of money (TVM):
It is an idea which states that the money existing at a particular time will be worth more than the matching sum in future due to the prospective earning capacity of the money. It is sometimes also referred to as the present discounted value.
b)
To calculate: The IRR value using IRR function.
Time value of money (TVM):
It is a concept which states that the money available at a particular time will be worth more than the identical sum in future due to the potential earning capacity of the money. It is sometimes also referred to as the present discounted value.
c)
To verify: If the net present vaue is negative when the discount rate is somewhat greater than IRR, and that it is positive when the discount rate is somewhat lesser than IRR.
Time value of money (TVM):
It is a concept which states that the money available at a particular time will be worth more than the identical sum in future due to the potential earning capacity of the money. It is sometimes also referred to as the present discounted value.
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PRACTICAL MGT. SCIENCE (LL)-W/MINDTAP
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- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,