The weighted value of a stream of money over a lifetime. When evaluating the value of money that will be received (or spent) over the course of several years, one cannot just add up the numbers for each year. You must also account for the fact that you could invest the money received earlier at some safe interest rate. This means money received earlier must be weighted higher compared to money received later.
Lifetime Present Value Print
Modified on: Mon, 28 Mar, 2022 at 4:32 PM
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