Hi Sir,
This may be a silly question but I'm having an issue defining time period for questions similar to this: "...will receive a perpetuity starting in 3 years' time".
In 3 years' time, does it mean the cashflow starts at the beginning of year 3 (T2) or the end of year 3 (T3) please?
Thank you so much.
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Defining time period for DCF
5y ago#1It is a time 3.
One year from now is time 1, two years from now is time 2, and 3 years from now is time 3.
(Time 3 is a point in time, not a whole year, and so could be the end of the third year or the start of the fourth year - they are effectively the same point in time.)
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