A:
A. The amount of interest expected to be generated each year
B. The time horizon – how long the investment is expected to be held in the portfolio
C. The interest rate to be used for discounting the annual payments to be received
D. The amount needed at the end of the holding period
Answer: D
to calculate net present value, the discount rate, cash flows and time horizon are all required. The amount desired at the end of the period is not part of the equation.
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RELATED TERMS

Present Value  PV
The current worth of a future sum of money or stream of cash ... 
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The process of determining the present value of a payment or ... 
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The total length of time that an investor expects to hold a security ... 
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The gain or loss on an investment over a specified period, expressed ... 
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A way of providing cash discounts on purchases. It means that ... 
Net Present Value  NPV
Net Present Value (NPV) is the difference between the present ...