Time value of money: related pages
DCF valuation The calculation of the present value of a stream of future cash flows taking into account both risk and the time expected to elapse before the cash is received.
NPV (net present value) The current value of a stream of future cash flows, negative or positive.
Payback period The time taken to recover the initial investment. A seriously flawed method of evaluating investments.
Risk premium The difference between the rate of return on a security (or a market or an investment) and the risk free rate of return.
Option value The difference between the intrinsic value of an option and its actual value is called the option value.
Copyright Graeme Pietersz © 2005-2019
