Chapter 5 - Chapter 5 Discounted Cash Flow Valuation FV of...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
05/13/09 Chapter 5: Discounted Cash Flow Valuation 1 Chapter 5 Discounted Cash Flow Valuation FV of annuities PV of annuities PV of unequal cash flows Finding the payment Finding the # of payments Finding the rate Perpetuities Effective interest Loan amortization
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
05/13/09 Chapter 5: Discounted Cash Flow Valuation 2 FV of annuities If I invest $100 at the end of each year for 3 years at an interest rate of 10%, what will the value of my investment be at the end of 3 years? What if I invest the $100 at the beginning of each year for 3 years? (annuity due)
Background image of page 2
05/13/09 Chapter 5: Discounted Cash Flow Valuation 3 PV of annuities I win a $10,000 “mini-lottery”! But I get $1,000 per year starting now for 10 payments. The appropriate interest rate for this cash flow is 6%. What is the present value of the lottery proceeds?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
05/13/09 Chapter 5: Discounted Cash Flow Valuation 4 PV of unequal cash flows A real estate investment will generate the
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/17/2008 for the course BCOR 2200 taught by Professor Tomnelson during the Spring '08 term at Colorado.

Page1 / 11

Chapter 5 - Chapter 5 Discounted Cash Flow Valuation FV of...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online