第四 净现值.ppt

Chapter Outline 4.1 The One-Period Case 4.2 The Multiperiod Case 4.3 Compounding Periods 4.4 Simplifications 4.5 What Is a Firm Worth? 4.6 Summary and Conclusions 4.1 The One-Period Case: Future Value If you were to invest $10,000 at 5-percent interest for one year, your investment would grow to $10,500 $500 would be interest ($10,000 × .05) $10,000 is the principal repayment ($10,000 × 1) $10,500 is the total due. It can be calculated as: $10,500 = $10,000×(1.05). The total amount due at the end of the investment is call the Future Value (FV). 4.1 The One-Period Case: Future Value In the one-period case, the formula for FV can be written as: FV = C1×(1 + r) Where C1 is cash flow at date 1 and r is the appropriate interest rate. 4.1 The One-Period Case: Present Value If you were to be promised $10,000 due in one year when interest rates are at 5-percent, your investment be worth $9,523.81 in today’s dollars. 4.1 The One-Period Case: Present Value In the one-period case, the formula for PV can be written as: 4.1 The One-Period Case: Net Present Value The Net Present Value (NPV) of an investment is the present value of the expected cash flows, less the cost of the investment. Suppose an investment that promises to pay $10,000 in one year is offered for sale for $9,500. Your interest rate is 5%. Should you buy? 4.1 The One-Period Case: Net Present Value In the one-period case, the formula for NPV can be written as: 4.2 The Multiperiod Case: Future Value The general formula for the future value of an investment over many periods can be written as: FV = C0×(1 + r)T Where C0 is cash flow at date 0, r is the appropriate interest rate, and T is the number of periods over which the cash is invested. 4.2 The Multiperiod Case: Future Value Suppose that Jay Ritter invested in the initial public offering of the Modigliani company. Modigliani pays a current dividend of $1.10, which is expected to grow at 40-percent per year for the next five years. What will the