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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

Uploaded on 07/11/2012

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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
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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?