Time Value of Money and Capital Budgeting

Overview

Learn fundamental financial concepts by exploring compounding and discounting principles for both lump sum and annuity cash flows, mastering future value and present value calculations that incorporate cash flows, time, and interest rates as key variables. Understand the essential purpose of capital budgeting and identify relevant cash flows that impact investment decisions. Develop analytical skills to evaluate and compare various capital budgeting techniques used in project selection, enabling you to make informed financial decisions in corporate finance settings.

Syllabus

Explain the concept of compounding and discounting value on lump sum and annuity cash flows.
Compute the various techniques of future value and present value considering the relevance factor of cash flows, time and interest rate.
Describe the purpose of capital budgeting and relevant cash flows.
Analyze the various capital budgeting techniques in project selection.
Explain the concept of compounding and discounting value on lump sum and annuity cash flows.
Compute the various techniques of future value and present value considering the relevance factor of cash flows, time and interest rate.
Describe the purpose of capital budgeting and relevant cash flows.
Analyze the various capital budgeting techniques in project selection.