What does the time value of money (TVM) mean?
It is the concept that a sum of money is worth more now than the same sum will be at a future date due to its earnings potential in the interim
What is the sinking fund factor?
The SFF is the equal periodic payment that must be made at the end of each of n periods at periodic interest rate i, such that payments compound to the $1 at the end of the last period.
What is an internal rate of return?
The IRR is a metric used in financial analysis to estimate the profitability of potential investments.
Last changed2 years ago