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CORPORATE

FINANCE
Quynh Trang Phan
2

CHAPTER 3
TIME VALUE OF MONEY
AND DCF MODEL
OUTLINE
Future value and compounding
Present value and discounting
DCF model
FUTURE VALUE
Simple interest
Interest on interest
(compounding)
PRESENT VALUE
Discount rate
Discount factor
6
FV WITH MULTIPLE PERIOD 7
PV WITH MULTIPLE PERIOD 8
FV FOR ANNUITY CF
9
PV FOR ANNUITY CF
10

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