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Flashcards in Applications Of Present Value Deck (5)
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1

Equivalent Annual Cost (EAC)

(NPVproject x r) / (1-1/(1+r)^t)

2

Bond

Loan issued with specific conditions by an issuer, and subscribed or purchased.

3

Characteristics of a bond

- Coupon
- Start and maturity dates
- Issue Price
- Redemption Price

4

Share

Piece of ownership of a firm

5

Value of a share

Sum of present values of dividends