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Mastering the Time Value of Money

Credential Earned: 
CEU
Cost: 
$

Course Focus

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


Who Should Take this Course?

This course is designed for managers without a significant financial background who are charged with project planning, purchasing decisions, and planning capital budgeting projects.

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

Faculty

More about School/Organization: 
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