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Multi-Period Cash Flow Problems

Multi-Period Cash Flow Problems. The amount of money invested and tied up today affects the amount of money available in subsequent time periods for future decisions What are the consequences of today’s decision on future decisions? What is the optimal decision for today and tomorrow?.

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Multi-Period Cash Flow Problems

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  1. Multi-Period Cash Flow Problems • The amount of money invested and tied up today affects the amount of money available in subsequent time periods for future decisions • What are the consequences of today’s decision on future decisions? What is the optimal decision for today and tomorrow?

  2. Examples • How to invest current given amount of money over a specified planning horizon so as to have necessary cash flow available in certain periods and maximize the return on the initial investment? (Highint case) • How to invest money over a specified planning horizon so as to have necessary cash flow available in certain periods and minimize the initial investment? (Taco-Viva case)

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