Time Value of Money
In class discussion:
This section of the consists of a number of topics that build on one another in order to train the student to perform various Time Value of Money (TVM) calculations. These TVM calculations are the basis for a wide variety of financial decisions faced by managers and by individuals. The skills learned are required in order to understand and master the material in later sections covering capital budgeting, investment analysis, and valuation procedures.
Text Readings and Assignments:
Fundamentals of Financial Management, by Eugene F. Brigham & Joel F. Houston, 11th. edition, (Thomsom - South-Western)
ISBN: 0324319800
Assigned Readings: Chapter 2 (pp. 24-54)
| Component | Chapter Sections: |
Pages |
Questions |
Self Test |
Problems |
| Basic Topics | 2.1 to 2.18 | 24 - 54 | |||
| Assignments | 54 - 61 | 1 - 8 | 1 - 4 | 1 - 40 |
Solutions to assigned Questions and Problems are available in MS WORD format here.
Dr. Constand's Online Readings:
The link below will take you to the professors' notes and discussions on the topics.
Basic Topics:
Terminology, Timelines and Tables
Simple Interest and Compound Interest
Future Value of an Ordinary Annuity
Present Value of an Ordinary Annuity
Future Value of an Annuity Due
Present Value of an Annuity Due
Advanced Topics:
Discount Rates and Rates of Return
Other Online Readings and Assignments:
None.
Return to the home page for GEB 5898.
Jump to another topic in this module:
Incremental After-Tax Cash Flow
Debt - Valuation and Rates of Return
Equity - Valuation and Rates of Return
Calculating the Weighted Average Cost of Capital
Capital Budgeting - Valuation of Investment Projects