Time Value of Money
Time lines and notation
Future value of a single amount
Present value of a single amount
Future value of an annuity
Present value of an annuity
Intra-year compounding and
discounting
Docsity.com
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Guidelines and tips
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community
Ask the community for help and clear up your study doubts
University Rankings
Discover the best universities in your country according to Docsity users
Free resources
Our save-the-student-ebooks!
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Time Value of Money-Project Management-Lecture Slides, Slides of Project Management
This lecture is part of lecture series on subject of Project Management at Tezpur University Gate. Instructor name is Rajkumari Vishaka. It includes: Time, Value, Money, Future, Present, Discounting, Lines, Notation, Cash, Inflow, FVIF, Growth, Rate
Typology: Slides
2011/2012
1 / 6
This page cannot be seen from the preview
Don't miss anything!
Related documents
Partial preview of the text
Download Time Value of Money-Project Management-Lecture Slides and more Slides Project Management in PDF only on Docsity!
Time Value of Money
Time lines and notation Future value of a single amount Present value of a single amount Future value of an annuity Present value of an annuity Intra-year compounding and discounting
Time lines and notation
What is a time line A period of time A point in time Cash Inflow & outflow Notations used in time value analysis
Present value of a single amount
Discounting an investment Present Value Interest Factor (PVIF) Calculating PVIF for different ‘r’ and ‘n’ Discount factor or PVIF Formula PV = FV [1 / (1 +r) n] FV = PV (1 +r) n Present value of an uneven series
Future Value of an Annuity
What is an annuity A stream of constant cash flows (payments or receipts) occurring at regular intervals of time Types of annuities cash flows at beginning of period (Annuity due) cash flows at end of period (Ordinary/Deferred/Regular Annuity) Calculating Regular Annuity FVA = A [(1 +r) n - 1] / r Applications What should you expect from your Provident Fund How much should you save annually Annual deposit in a Sinking Fund Finding the Interest Rate for a constant annual deposit Trip to the moon? How long should you wait?