Mastering the Time Value of Money

In today's competitive business world, managers are charged with making many project-related decisions, often involving costs or revenues that will be encountered some time in the future. In this course, participants develop a solid understanding of the time value of money to prepare them to make smart business decisions. Using timelines and cash-flow calculations they will learn to project cash flow, calculate payments, establish the value of securities and investments, and determine when it is more cost effective to lease or to buy.

Participants in this course will need one of the following financial calculators...

• Hewlett-Packard 12C
• Texas Instruments BA II Plus

Key Benefits

Participants who complete this course will be able to…

• Make planning decisions in the present, based on the accurate calculation of cash flow projections
• Use a cash-flow timeline to conceptualize time-value-of-money problems
• Use a financial calculator to solve time-value-of-money problems
• Calculate present and future values of payments, perpetuities, and annuities
• Use these concepts as a foundation for making capital investment decisions

Topics Include

Module 1- The Time Value of Money

• Constructing a Basic Timeline
• Conceptualizing TVM Problems

Module 2 - Build Your TVM Toolbox

• Calculate the Future Value of a Lump Sum
• Calculate the Present Value of a Lump Sum

Module 3 - Perpetuities

• Calculate the Present Value of a Perpetuity
• Calculate the Present Value of a Growing Perpetuity
• Present Value of a Perpetuity and Growing Perpetuity

Module 4 - Annuities

• Calculate the Present Value of an Annuity
• Present Value of an Annuity

Module 5 - Future Values

• Calculate the Future Value of an Annuity
• Combining TVM Tools

Module 6 - Final Assignments

• Mastering the Time Value of Money Interview
• Mastering the Time Value of Money Action Plan