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CHAPTER 4
Applied Finance and Economics
Part III Foundations and Applications of the Time Value of Money: Cash Happens

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Learning Objectives

■ Calculate the value of a stream of future cash flows.

■ Define and calculate the value of a perpetuity.

■ Differentiate between an ordinary annuity, an annuity due, and a deferred annuity.

■ Calculate the value of an ordinary annuity and an annuity due.

The Investment Advisor Body of Knowledge + Test Bank

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