Introduction to Corporate Finance
LEARNING OBJECTIVES After studying this chapter, you will be able to: understand how to find the future value of a lump sum inve ...
PART 1: INTRODUCTION A simple example illustrates the essence of the time value of money. Suppose you have $100 today, and you c ...
3: The Time Value of Money of an investment. Principal is the amount of money on which the interest is paid. To demonstrate, if ...
PART 1: INTRODUCTION The following example illustrates how you might use the concept of future value to evaluate an investment i ...
3: The Time Value of Money In practice, when analysts solve problems like these, they don’t solve for the future value algebraic ...
PART 1: INTRODUCTION 3-3 PRESENT VALUE OF A LUMP SUM RECEIVED IN THE FUTURE So far we have examined how to project the amount of ...
3: The Time Value of Money 3-3a THE CONCEPT OF PRESENT VALUE In finance, we use the term discounting to describe the process of ...
PART 1: INTRODUCTION Australis NZ Pty Ltd manufactures tennis racquets with leased machines. Their leases run for five years, wh ...
3: The Time Value of Money the company pays to remove the equipment in eight years, and the $855.55 represents an inflow when th ...
PART 1: INTRODUCTION 3-4 ADDITIONAL APPLICATIONS INVOLVING LUMP SUMS Equations 3.1 and 3.2 are just two ways of writing a mathem ...
3: The Time Value of Money arguments ‘pmt’ and ‘type’ still do not apply, so enter 0). For Excel to solve this problem, the valu ...
PART 1: INTRODUCTION How did Google’s equity achieve such spectacular performance? At least in theory, a company’s share price o ...
3: The Time Value of Money 3-5 FUTURE VALUE OF CASH FLOW STREAMS Financial managers frequently need to evaluate streams of cash ...
PART 1: INTRODUCTION Letting CFt represent the cash flow at the end of year t, the future value of an n-year mixed stream of cas ...
3: The Time Value of Money These techniques allow you to calculate the future value of any cash flow stream. However, one catego ...
PART 1: INTRODUCTION You wish to save money on a regular basis to finance an exotic vacation in five years. You are confident th ...
3: The Time Value of Money Making this calculation for a longer annuity would become cumbersome. Fortunately, a shortcut formula ...
PART 1: INTRODUCTION 3-5d FINDING THE FUTURE VALUE OF AN ANNUITY DUE The calculations required to find the future value of an an ...
3: The Time Value of Money Equation 3.5 demonstrates that the future value of an annuity due always exceeds the future value of ...
PART 1: INTRODUCTION The future value of the annuity due is greater because its cash flow occurs at the beginning of each period ...
«
1
2
3
4
5
6
7
8
9
10
»
Free download pdf