原创力文档- 1、原创力文档（book118）网站文档一经付费（服务费），不意味着购买了该文档的版权，仅供个人/单位学习、研究之用，不得用于商业用途，未经授权，严禁复制、发行、汇编、翻译或者网络传播等，侵权必究。。
- 2、本站所有内容均由合作方或网友上传，本站不对文档的完整性、权威性及其观点立场正确性做任何保证或承诺！文档内容仅供研究参考，付费前请自行鉴别。如您付费，意味着您自己接受本站规则且自行承担风险，本站不退款、不进行额外附加服务；查看《如何避免下载的几个坑》。如果您已付费下载过本站文档，您可以点击 这里二次下载。
- 3、如文档侵犯商业秘密、侵犯著作权、侵犯人身权等，请点击“版权申诉”（推荐），也可以打举报电话：400-050-0827(电话支持时间：9:00-18:30)。
查看更多
Lecture 2 Time Value of Money
and Net Present Value
(货币的时间价值和净现值)
In 2003 Toyota announced plans to build a new $800
million automobile plant in San Antonio, Texas,
Meanwhile, in Missouri, Procter Gamble had
started installation of a new machine to produce
annually 80,000 tons of paper towel and tissues.
What was special about these developments?
Nothing!
Present Value and Future Value
• Would you choose to receive $20 today or 1 year
from now?
• $20 today is worth more than expectation of $20 next
year because:
A bank would pay interest on $20.
Inflation makes next year’s $20 less valuable than today’s.
Uncertainty of receiving next year’s $20 (depending on risk
involved)
$1 in the future is worth less than $1 today,
because interest rates are positive.
The value of future money today :
Present Value (of future cash flows)
Vs.
The value of today’s money in the future:
Future Value ( of present cash flows)
1 One Time Period Case
Example 1
Keith is trying to sell a piece of land in Alaska.
Today, he was offered $10,000 for the property. He
was about to accept the offer when another individual
offered him $11,424. However, the second offer was
to be paid a year from now. The annual interest rate
in the bank is 12%. (Sometimes, we also call it rate of
return or discount rate).
Which offer should he choose?
There are two ways to solve this problem:
• Present Value Analysis
• Future Value Analysis
In general, present value of a cash flow received 1
period from now is:
C
PV C 1
0
1 + r
Future value of a cash flow received today is:
FV C C
文档评论（0）