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

Discounting
The process of determining the present value of a payment or ... 
Present Value  PV
The current worth of a future sum of money or stream of cash ... 
Time Horizon
The length of time over which an investment is made or held before ... 
1%/10 net 30
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 ... 
Horizon Analysis
The analysis of a security or portfolio’s total returns over ...