15 Lecture - period then its simple interest A dollar today...

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Lecture 15 19:58 Chatper 8 Net present value The payback The first payment you have to make is 500$ after year one you wil pay $200 then  $400…. How soon will you get $500 dollars back The purpose is to determin when you will break even Chapter 5 Time value Money Compound interest – earning interest on interest Annual Interest rate Simple interest – if for the first year you only make 5% and its paid at the end of the 
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Unformatted text preview: period then its simple interest A dollar today is worth more than tomorrow – In general Multiple cash flows – do present value for each one Can now use cash flow formula, calculate net present value NPV Payment = PV / r Nominal vs Real Technical analysis Fundamental analysis Precash flow 19:58 19:58...
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