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Costs and Rate of Return from Off-Shore Wind Farms
Costs and Rate of Return from Off-Shore Wind Farms

... Consideration was given to incorporating these costs into the overall cost of capital across the project, however, as the LECs/SEGC model is in essence a public enterprise company not issuing dividends, a simple cost basis seemed more appropriate for comparison. Residual Value All the models are bas ...
The Yield Curve
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New Zealand’s economic reforms after 1984 L. Christopher Plantier
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Here - Gold Standard Institute
Here - Gold Standard Institute

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Corporate Finance: Modigliani and Miller

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Chapters 3 - 4 Financial Statements, Cash Flow, and Analysis of

PDF only - at www.arxiv.org.
PDF only - at www.arxiv.org.

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Searching for Returns That Outpace Inflation.indd

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Global Market Maturity Leads to Addition of New Fund: Janus

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Present value

In economics, present value, also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is always less than or equal to the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of negative interest rates, when the present value will be greater than the future value. Time value can be described with the simplified phrase, “A dollar today is worth more than a dollar tomorrow”. Here, 'worth more' means that its value is greater. A dollar today is worth more than a dollar tomorrow because the dollar can be invested and earn a day's worth of interest, making the total accumulate to a value more than a dollar by tomorrow. Interest can be compared to rent. Just as rent is paid to a landlord by a tenant, without the ownership of the asset being transferred, interest is paid to a lender by a borrower who gains access to the money for a time before paying it back. By letting the borrower have access to the money, the lender has sacrificed the exchange value of this money, and is compensated for it in the form of interest. The initial amount of the borrowed funds (the present value) is less than the total amount of money paid to the lender.Present value calculations, and similarly future value calculations, are used to value loans, mortgages, annuities, sinking funds, perpetuities, bonds, and more. These calculations are used to make comparisons between cash flows that don’t occur at simultaneous times. The idea is much like algebra, where variable units must be consistent in order to compare or carry out addition and subtraction; time dates must be consistent in order to make comparisons between values or carry out simple calculations. When deciding between projects in which to invest, the choice can be made by comparing respective present values of such projects by means of discounting the expected income streams at the corresponding project interest rate, or rate of return. The project with the highest present value, i.e. that is most valuable today, should be chosen.
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