# TVM - MGMT 411 Fall 2009 Investment Management Time Value...

This preview shows pages 1–9. Sign up to view the full content.

Time Value of Money Review August 27, 2009 MGMT 411, Fall 2009 Investment Management

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

View Full Document
2/28 What is the Time Value of Money? \$100,000 today or \$X one year from today…what is your \$X value? How much money is it going to take to make you wait one year for your money? This is your personal Time Value Introduction Basics Caveats NPV
3/28 Time Value of Money “…time value of money is the value of money figuring in a given amount of interest for a given amount of time.” Wikipedia.org Introduction Basics Caveats NPV

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

View Full Document
4/28 Notation FV – Future Value PV – Present I – Interest rate (i, r) N – Time or Number of periods (t,n) PMT – Payment or Annuity NPV – Net Present Value IRR – Internal Rate of Return Introduction Basics Caveats NPV
5/28 Value of a single lump sum How do you move a lump sum through time? First need to assume a rate (i) at which to move your money through time Can set up a timeline to visualize Introduction Basics Caveats NPV

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

View Full Document
6/28 Value of a single lump sum: Introduction Basics Caveats NPV
7/28 Value of a single lump sum: Can Solve for time and interest Introduction Basics Caveats NPV

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

View Full Document
8/28 BA II Plus Introduction Basics Caveats NPV Use the highlighted row of keys for solving any of the FV, PV, FVA, PVA, FVAD,
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 27

TVM - MGMT 411 Fall 2009 Investment Management Time Value...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online