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A General Model for Exponentially Compounding and Discounting Future Cash Flows

William W. Thompson, Jr.

Management Science, 1965, vol. 12, issue 2, C3-C5

Abstract: This paper presents a general model to be used in adjusting cash flows which occur over future time intervals to reflect the effects of continuous compounding and/or discounting. The method is illustrated by means of a hypothetical example. The framework of analysis employed here may be extended to other systems having similar characteristics of growth and decay.

Date: 1965
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