| A | B |
|---|
| annuity | a series of equal cash flows |
| cash flows | the cash receipts and cash payments of a company |
| compounding | Earning interest on previously earned interest |
| future value | the value of money invested today at some point in the future |
| time value of money | the expectation that invested money will grow over time |
| net present value | the difference between the discounted cash flows and the investment |
| present value | The current value of a future cash payment or receipt |
| present value of an annuity | an amount invested at a given interest rate that supports the payments of an annuity |
| rate of return | the relationship of money earned compared to the money invested |
| net cash flow | The difference between cash receipts and cash payments |
