Midterm Exam Formula Sheet
Chapter 3
TA = TL + TOE,
NWC = CA + CL, NI = ∆RE + DIV
CFA = CFC + CFS +
∆Cash = OCF – ∆NWC (non cash) – NCS
OCF = NI + DEP + INT
∆NWC (NC) = End NC NWC – Beg NC NWC
NCS = End NFA – Beg NFA + DEP
CFC = INT – NNB
CFS = DIV  NNEI
Time Value of Money
FV =
(
29
t
r
1
Investment
+
×
PV =
(
29
t
r
1
Value
Future
+
PV of a perpetuity =
r
C
PV of a growing perpetuity =
g
r
C
1

PV of an annuity =
+

×
t
)
r
1
(
r
1
r
1
C
=
+

×

r
)
r
1
(
1
C
t
(easier to calculate)
FV of an annuity =

+
×
r
1
)
r
1
(
C
t
PV of a growing annuity =
+
+

×

t
1
r
1
g
1
1
g
r
C
Annuity factor =
+

t
)
r
1
(
r
1
r
1
=
+


r
)
r
1
(
1
t
(lower version is easier to calculate)
PV of an annuity due = (1+r)
×
(PV of an annuity)
FV of an annuity due = (1+r)
×
(FV of an annuity)
1 + Real rate =
rate
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 Winter '10
 MingDong
 Time Value Of Money, Net Present Value

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