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Unformatted text preview: III. Time Value of Money a. $ today is worth more that a $ tomorrow b. Present Value (PV)- value of money today at t=0 c. Future Value (FV)- value of $ at some point in the future d. Reversion- a one time lump sum to be receive in the future e. Compounding- calculation of FV f. Discounting- calculation of PV g. Net Present Value (NPV)- PV of the cash flows in minus PV of the cash flows out h. Internal Rate of Return (IRR)- discount rate that causes NPV=0...
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This note was uploaded on 04/14/2008 for the course RE 3405 taught by Professor Delaney during the Spring '08 term at Baylor.
- Spring '08