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Sir I cannot find present value table sheet in notes which include value of discount factors according to their respective years? And just want to confirm that Is PRESENT VALUE another name for PRINCIPAL AMOUNT???
Have you downloaded the current edition of the lecture notes?
They are on pages 4 and 5 !!
(and no – present value is not another name for principal amount (although in certain cases the two will be the same))
Why not?? In lecture on discounting you told that we are working backwards to get amount orignally invested subtracting all the interest accumulated???
No I don’t say that.
The present value is the equivalent amount now – which is certainly the amount that if invested now would, with interest, grow to the future receipt.
But that doesn’t mean that we are investing that amount now. You will see what I mean in the following lectures on investment appraisal.
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