A future quality issue is one where you know the amount you will contribute today, however you need to make sense of how much your venture will develop to in n years. We will utilize n to signify the periods over which the venture task will occur. Likewise, take note of that I've underlined the words "develop to", in light of the fact that we can utilize a recipe to mechanize the investment computation. We put in a certain sum, and we can compute the sum we can take out after n years.
A present quality issue is one in which we know (or can evaluate) the measure of cash that will come to us later on, yet wish to know the amount we ought to spend to get it- -at some fancied premium rate. This may sound abnormal at initially, in light of the fact that, by what method would we be able to know what amount of cash is coming to us later on? In any case, there are circumstances in which the future income is contractual, so actually, it is known. Here's an illustration, that you are now acquainted with.
Mar 15th, 2015
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