Jul 24, 2013

Economic for Me - Definitions

Present Value (PV)

This sounds a bit confusing, but it really isn't. The basis is that receiving $1,000 now is worth more than $1,000 five years from now, because if you got the money now, you could invest it and receive an additional return over the five years.

The calculation of discounted or present value is extremely important in many financial calculations. For example, net present value, bond yields, spot rates, and pension obligations all rely on the principle of discounted or present value. Learning how to use a financial calculator to make present value calculations can help you decide whether you should accept a cash rebate, 0% financing on the purchase of a car or to pay points on a mortgage.

New words: 
Additional return: Lợiích cộngthêm
Discounted: Chiết khấu
Present value: Giátrị hiệntại của tiềnmặt
Bond yields: Lợisuất tráiphiếu
Spot rate: Tỷgiá giaongay
Pension obligation: Tiền lươnghưu
Financial calculation: Tínhtoán tàichính
Cash rebate: Giảmgiá tiềnmặt
Mortgate: Thếchấp

to be COntinuing........
Things that determine Value of Company or business.
http://www.bizacquisition.com/Value_of_a_Business.html

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