tailieunhanh - Time Value of Money and Investment Analysis

Department of Agricultural and Consumer Economics and Department of Finance. University of Illinois, Urbana-Champaign .Time Value of Money and Investment Analysis: Introduction: Basic Concepts and Terminology, Categories of Time Value of Money Problems, Single-Payment Compound Amount (SPCA), Uniform Series Compound Amount (USCA), Sinking Fund Deposit (SFD), Single-Payment Present Value (SPPV), Uniform-Series Present Value (USPV), Capital Recovery (CV), Conceptualization and Solution of Time Value of Money Problems, Notation Summary, Other conventions commonly employed in this booklet and in other TVM materials, Derivation of Formulas used for each category of problem, Impact of Compounding Frequency, Summary of Materials, Summary of TVM Formulas | Time Value of Money and Investment Analysis Explanations and Spreadsheet Applications for Agricultural and Agribusiness Firms Part I. by Bruce J. Sherrick Paul N. Ellinger David A. Lins V September 2000 The Center for Farm and Rural Business Finance Department of Agricultural and Consumer Economics and Department of Finance University of Illinois Urbana-Champaign FAST Time Value of Money and Investment Analysis Table of Contents Part I. Introduction . 1 Basic Concepts and Terminology. 3 Categories of Time Value of Money Problems. 4 1. Single-Payment Compound Amount SPCA . 4 2. Uniform Series Compound Amount USCA . 5 3. Sinking Fund Deposit SFD . 5 4. Single-Payment Present Value SPPV . 6 5. Uniform-Series Present Value USPV . 6 6. Capital Recovery CV . 7 Conceptualization and Solution of Time Value of Money Problems . 8 Notation Summary. 8 Other conventions commonly employed in this booklet and in other TVM materials. 9 Derivation of Formulas used for each category of problem. 9 Impact of Compounding Frequency. 13 Summary of Materials in Part I. 15 Summary of TVM Formulas. 16 Time Value of Money and Investment Analysis introduction This document contains explanations and illustrations of common Time Value of Money problems facing agricultural and agribusiness firms. The accompanying spreadsheet files contain applications that mirror each section of the booklet and provide the tools to do real-time computations and illustrations of the ideas presented in the text. Taken together they provide the capacity to analyze and solve a wide array of real-world investment problems. Time Value of Money problems refer to situations involving the exchange of something of value money at different points in time. In a basic sense all investments involve the exchange of money at one point in time for the rights to the future cash flows associated with that investment. Expressing all of the values that are exchanged in terms of a common medium of exchange or money allows .