30 years: Financial markets trader
This video expands on Abdulla's previous video, What is Time Value of Money?, by introducing multiple cash flows occurring over different periods of time.
This video expands on Abdulla's previous video, What is Time Value of Money?, by introducing multiple cash flows occurring over different periods of time.
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3 mins 10 secs
Investors can use the cash discounting/compounding formula to compare two or more investment opportunities with cash flows occurring over the same time period.
Key learning objectives:
Learn how investors use the cash discounting formula to compare investments
Identify its limitations
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