Decision making by individuals and firms - how to make decisions involving Time: Understanding present value
4 important questions on Decision making by individuals and firms - how to make decisions involving Time: Understanding present value
What is the basic rule in deciding whether or not to undertake a prject?
then choose the course for the highest economic profit
Why use present value, when making decsisions when time is a factor? How about projects that occure over time?
we can also compare projects that occur overtime by comparing values today?
How do we determine how much we need today in order to figure out how much we will get one year from now? How do we define it?
that is the price charged for borrowin money expressed as the percentage of the amount borrowed
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How can we define the Present value of X
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