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My $.02.
Let's say your operations, after taxes, grow your assets (say your checking account) by 1.5% from Jan to Dec. That's your IRR, and it;s important as you might be able to invest your money in something else (with less risk perhaps) and achieve the same earnings. Say a 5 year muni bond would make you 3 percent, if you cannot get your IRR up it would be better to buy the bond.
PV example: Say you are owed 100K, and you are being paid 5% interest on the loan. I havent done the math, but what if you could get your money back faster, before the end of the note. The PV would tell you the amount to accept today rather than wait for those payments over time.
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David
1972 911T/S MFI Survivor
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