Determine the present value of an investment


Question: What does it take to determine the present value of an investment? How would you project the future cash flows? How do you determine what discount, or interest, rate to use? Think about today's economy. How would you use the current information to determine the value of an investment? Would it be higher or lower than it was a year ago? Why?

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Finance Basics: Determine the present value of an investment
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