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Lecture Managerial accounting (15/e): Chapter 13A - Garrison, Noreen, Brewer
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Chapter 13A - The concept of present value. A dollar received today is more valuable than a dollar received a year from now for the simple reason that if you have a dollar today, you can put it in the bank and have more than a dollar a year from now. Because dollars today are worth more than dollars in the future, cash flows that are received at different times must be weighted differently. After studying this chapter you will be able to understand present value concepts and the use of present value tables. |