Day 4-Part 1.3

Day 4-Part 1.3 - BusinessManagement301 Day4:Part1.3

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Business Management 301 Day 4: Part 1.3 June 30, 2011
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Chapter 5:  Chapter 5:  The Time Value of  The Time Value of  Money Money
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Mind Map Why?:   1) Most long-term project have cash flows  that occur at different points in time .   2) Given that the passage of time impacts the  value of cash flows , the value of a project is  dependent on how we assess these  differences.   3) The purpose of this chapter is to develop  the tools necessary to evaluate cash flows  over time in order to make optimal decisions .    
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Mind Map Learning Objectives: Develop an understanding of how  time impacts cash flows Quantify the time/value relationship Evaluate complex financial  contracts/projects   
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Mind Map Key Words/Concepts: TVM PV, FV, PVA, FVA Lump-Sum, Annuity Ordinary Annuity vs. Annuity Due Perpetuity Deferred Annuity Mixed-Stream Cash Flow  WORK LOTS OF PROBLEMS! 
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WHEN DO YOU WANT IT? Suppose that I was going to give you a dollar… 
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Day 4-Part 1.3 - BusinessManagement301 Day4:Part1.3

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