This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Net capital spending = Depreciation + Increase in fixed assets Cash flow from assets = Cash flow to creditors + Cash flow to stockholders Cash flow from assets = OCF NWC Net capital spending PV = FV/(1 + r) t FV = PV(1 + r ) t r = (FV / PV) 1 / t 1 t = ln(FV / PV) / ln(1 + r ) PVA = C(PVAF) = C ({1 [1/(1 + r) ] t } / r ) C = PVA/PVAF FVA = C(FVAF) = C {[(1 + r) t 1] / r } C = FVA/FVAF APR = (Periodic Rate)( m ) APR = m [(1 + EAR) 1/ m 1] EAR = [1 + (APR / m )] m 1 (1 + R Nom ) = (1 + R Real )(1 + i) (Be able to solve for R Nom , R Real or i) (1 + R Nom ) = (1 + R Real )(1 + h) (Be able to solve for R Nom , R Real or h)...
View
Full
Document
This note was uploaded on 12/04/2011 for the course ECON 1000 taught by Professor Awwwwww during the Spring '11 term at UC Riverside.
 Spring '11
 AWWWWWW

Click to edit the document details