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Asaisaio Posted 12 years ago
Grammar
the value today
Suppose you become weary of tending the building
and decide to sell it. To set a fair price for the building,
you would need to determine the value today of
the entire stream of future income. The value of that
stream is called the present value of the capital asset.
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(1) Does "the value today" mean "today's value"? If so, what the difference between the two is?
(2) what does it mean by "the value today of
the entire stream of future income"?
Thanks in advance!
and decide to sell it. To set a fair price for the building,
you would need to determine the value today of
the entire stream of future income. The value of that
stream is called the present value of the capital asset.
---------------------------------
(1) Does "the value today" mean "today's value"? If so, what the difference between the two is?
(2) what does it mean by "the value today of
the entire stream of future income"?
Thanks in advance!
Top answer
1) Yes. e. value today) of an amount receivable or payable in the future is typically calculated using a process called discounting, which is like the reverse of accruing interest.
- 1) Yes.
- e.
- value today) of an amount receivable or payable in the future is typically calculated using a process called discounting, which is like the reverse of accruing interest.
- 50 today.
- The exact details of how this is done depend on the individual situation.
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2 Answers
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1) Yes.
2) The present value (i.e. value today) of an amount receivable or payable in the future is typically calculated using a process called discounting, which is like the reverse of accruing interest. For example, if you can invest $1 today to yield $2 in ten years, then $1 in ten years is worth $0.50 today. The exact details of how this is done depend on the individual situation.
2) The present value (i.e. value today) of an amount receivable or payable in the future is typically calculated using a process called discounting, which is like the reverse of accruing interest. For example, if you can invest $1 today to yield $2 in ten years, then $1 in ten years is worth $0.50 today. The exact details of how this is done depend on the individual situation.
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