Across the disciplines why this chapter matters to

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Unformatted text preview: Disciplines Why This Chapter Matters To You Accounting: You need to understand time-value-of-money calculations in order to account for certain transactions such as loan amortization, lease payments, and bond interest rates. Information systems: You need to understand time-value-of-money calculations in order to design systems that optimize the firm’s cash flows. Management: You need to understand time-value-of-money calculations so that you can plan cash collections and disbursements in a way that will enable the firm to get the greatest value from its money. Marketing: You need to understand time value of money because funding for new programs and products must be justified financially using time-value-of-money techniques. Operations: You need to understand time value of money because investments in new equipment, in inventory, and in production quantities will be affected by timevalue-of-money techniques. CHAPTER 4 Time Value of Money 131 ecause we view the firm as a going concern, we assess the decisions of its financial managers, and ultimately the value of the firm itself, in light of its cash flows. The opportun...
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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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