FIN%203100%20Brooks%20CH%203_TVM_Part%201

FIN%203100%20Brooks%20CH%203_TVM_Part%201 - 1...

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Principles of Finance – FIN 3100 Chapter 3  - The Time Value of Money – Part 1 1
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Agenda Understand why we measure value. Understand the time value of money. Learn how time value of money concepts can be  applied to making financial decisions.   Specifically, How can we determine the future value of an  investment made today?  2
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Abbreviations 3
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There is a time value  to  money. Money has two dimensions:   how much  and  when . Value is what something is worth based on  when  we  receive it. 4
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Which would you rather have… …a dollar today or a dollar tomorrow?  Why? A dollar in hand today is worth more than a  dollar promised at some time in the future. If you had the money today, you could spend it.
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This note was uploaded on 01/24/2012 for the course FIN 4260 taught by Professor Victorwakeling during the Spring '12 term at Kennesaw.

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FIN%203100%20Brooks%20CH%203_TVM_Part%201 - 1...

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