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02/23/98 15:56 $503 588 5237 MARION C0. COM. iii DIR ADMIN CORREC C~004/O11 <br />FEB-23-98 MON 11:13 PALMER GROTH & PIETKA FAX N0. 503 273 4273 P.03 <br />I) Conversion of fu~re payments tc g~reseat value. <br />2) Moae7 paid at the begisuiing of a time period far the use of capital during that period; <br />commonly daducted frotn th~ principa~ w~en the funds are advar-ced_ <br />The proc~edure itt which a discount rat~e is applied to a set of prajected income~ streams aad a <br />rceezsion. The analyst spa~fies the quantity, vaiiability, timing, and duiation of the iricome <br />~ams as vveal as die quantity and timing of tht r~vasion and discounts each to its present value <br />at a~ed yield ra~e, DCF aaalysis caa be applied with any yield capital'vation teehnique arsd <br />may be performed on ~iti~~r a l~by-lease or agg~regate basis. <br />A proeedute used to convert periodic incomes, cash flows, and reversions into p~esear value; <br />basad on the assumpdon that be~~efits re~eived in the fktntro are worth ]~ss than nc~ same bencfits <br />~ecxaved now. <br />A~neld :are used tc caavetc firture payaieaits or sace~pts into present vaIue. See also risk rdte; safe <br />raze; Yi*.Id sate CY)- <br />