Full Answer
When cash flows are at the beginning of each period, is there a period required to bring the value backwards?
When cash flows are at the beginning of each period there is one less period required to bring the value backward to a present value. Therefore, we multiply each cash flow by an additional (1 + i n) giving division by one less.
What is cash flow?
The cash flow (payment or receipt) made for a given period or set of periods.
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