416 describe the procedure used to amortize a loan

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Unformatted text preview: se to assess the impact of proposed actions. Because firms have long lives and their important decisions affect their long-term cash flows, the effective application of timevalue-of-money techniques is extremely important. Time value techniques enable financial managers to evaluate cash flows occurring at different times in order to combine, compare, and evaluate them and link them to the firm’s overall goal of share price maximization. It will become clear in Chapters 6 and 7 that the application of time value techniques is a key part of the value determination process. Using them, we can measure the firm’s value and evaluate the impact that various events and decisions might have on it. Clearly, an understanding of time-value-of-money techniques and an ability to apply them are needed in order to make intelligent value-creating decisions. REVIEW OF LEARNING GOALS Discuss the role of time value in finance, the use of computational tools, and the basic patterns of cash flow. Financial m...
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This document was uploaded on 03/03/2014 for the course MBA BMMF at Open University Malaysia.

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