tailieunhanh - Lecture Essentials of corporate finance (2/e) – Chapter 4: Introduction to valuation: the time value of money

After completing this unit, you should be able to compute the future value of an investment made today, be able to compute the present value of cash to be received at some future date, be able to compute the return on an investment. | Introduction to valuation: The time value of money Chapter 4 4- Key concepts and skills Be able to compute the following: The future value of an investment made today The present value of cash to be received at some future date The return on an investment Be able to predict how long it will take for an investment to reach a desired value Be able to solve time value of money problems using: formulas a financial calculator a spreadsheet Copyright 2011 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of Corporate Finance 2e by Ross et al. Slides prepared by David E. Allen and Abhay K. Singh 4- Chapter outline Future value and compounding Present value and discounting More on present and future values Copyright © 2011 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of Corporate Finance 2e by Ross et al. Slides prepared by David E. Allen and Abhay K. Singh 4- Basic definitions Present value (PV) The current value of future cash flows discounted at the appropriate discount rate. Value at t=0 on a time line Future value (FV) The amount an investment is worth after one or more periods. ‘Later’ money on a time line Copyright 2011 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of Corporate Finance 2e by Ross et al. Slides prepared by David E. Allen and Abhay K. Singh 4- Time value of money refers to the fact that a dollar in hand today is worth more than a dollar promised at some time in the future. At a practical level, one reason for this is that you could earn interest while you waited; so a dollar today would grow to more than a dollar later. The trade-off between money now and money later therefore depends on, among other things, the rate you can earn by investing. Basic definitions (cont.) Interest rate (r) Discount rate Cost of capital Opportunity cost of capital Required return Terminology depends on usage Copyright 2011 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of Corporate Finance 2e by Ross et al. Slides . | Introduction to valuation: The time value of money Chapter 4 4- Key concepts and skills Be able to compute the following: The future value of an investment made today The present value of cash to be received at some future date The return on an investment Be able to predict how long it will take for an investment to reach a desired value Be able to solve time value of money problems using: formulas a financial calculator a spreadsheet Copyright 2011 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of Corporate Finance 2e by Ross et al. Slides prepared by David E. Allen and Abhay K. Singh 4- Chapter outline Future value and compounding Present value and discounting More on present and future values Copyright © 2011 McGraw-Hill Australia Pty Ltd PPTs t/a Essentials of Corporate Finance 2e by Ross et al. Slides prepared by David E. Allen and Abhay K. Singh 4- Basic definitions Present value (PV) The current value of future cash flows discounted at the .

• Tài chính doanh nghiệp
• Corporate finance
• Essentials of corporate finance
• Financial management
• Business finance
• Business organisation
• The time value of money
• Time Value of Money
• Future value of Money
• Present value of Money
• Rates of return amortization
• Time lines show timing of cash flows
• Time line for an ordinary annuity
• Time and Money
• Financial Calculator
• Present Value
• Future Value
• Interest rate
• Inventory model
• Crashable lead time
• Management of the current assets
• Solution algorithm
• Managerial Accounting
• Lecture Managerial Accounting
• Kế toán quản trị
• Managerial finance
• Lecture Managerial finance
• Rates of return
• Intermediate accounting
• Lecture Intermediate accounting
• Single sum problems
• Present value measurement
• Compound interest
• Finance management
• Fundamentals of finance management
• Time lines
• The power of compound interest
• Savings problem
• The balloon payment
• Stocking and price reduction decisions
• Non instantaneous deteriorating items
• Complex and time consuming
• Decision making processes
• Lecture Money and Banking
• Bài giảng Tiền tệ và Ngân hàng
• Money and Banking
• Future value concepts
• Financial environment
• Financial Accounting
• Fundamentals of financial management
• Financial statement
• Quản lý tài chính
• Personal financial planning
• Personal financial
• Lecture Personal financial planning
• Financial planning
• Engineering economics
• Lecture Engineering economics
• Time value
• Money application
• Determining operating costs
• Calculating annual costs
• Lecture Financial accounting
• Future amounts
• Present values
• Financial instruments
• Business decision
• Kế toán tài chính
• Fundamentals of finance
• Lecture Business finance
• Capital market
• Equity securities
• Issues in financial accounting
• Financial statements
• Future values
• Lecture Engineering economy
• Engineering economy
• Bài giảng Kinh tế kỹ thuật
• Computation of simple interest
• Accumulated interest
• Financial transactions