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Chapter 7

Discounting and investment appraisal

Outcome

By the end of this session you should be able to:

 calculate future values of an investment using both simple and compound
interest

 calculate the present value of a future cash sum, an annuity and a perpetuity

 calculate the net present value (NPV) and internal rate of return (IRR) of a
project and explain whether and why it should be accepted

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can
be found in Chapter 7 of your Study Text

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