fin 221 Ch5

fin 221 Ch5 - Present value : The value today of a future...

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Time Value of Money Time line : An important tool used in time value analysis; it is a graphical representation used to show the timing of cash flows. Future values : The amount to which a cash flow or series of cash flows will grow over a given period of time when compounded at a given interest rate.
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Unformatted text preview: Present value : The value today of a future cash flow or series of cash flows. Compounding : The arithmetic process of determining the final value of a cash flow or series of cash flows when compound interest is applied....
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