公司理财培训课件(PPT38页).pptx

CH4: Discounted Cash Flow Valuation;Key Concepts and Skills;Chapter Outline;Don is trying to sell a piece of land in Alaska. Yesterday, he was offered $10,000 for the property. He was about ready to accept the offer when another individual offered him $11,424. However, the second offer was to be paid a year from now. Don has satisfied himself that both buyers are honest and financially solvent, so he has no fear that the offer he selects will fall through. Which offer should Don choose? Mike, Don’s financial advisor, points out that if Don takes the first offer, he could invest the $10,000 in the bank at an insured rate of 12 percent.;4.1 The One-Period Case;Future Value;Present Value;In the one-period case, the formula for PV can be written as:;Net Present Value;The present value of the cash inflow is greater than the cost. In other words, the Net Present Value is positive, so the investment should be purchased.;Suppose you has put $500 in a savings account at the bank. The account earns 7%, compounded annually. How much will you have at the end of 3 years?;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.;Present Value and Discounting;In the multiperiod case, the formula for the present can be written as:;How Long is the Wait?;What Rate Is Enough?;At 9 percent interest, how long does it take to double your money? To quadruple it?;Multiple Cash Flows ;0;The present value of the following cash flow stream is $6,453 when discounted at 10 percent annually. What is the value of the missing cash flow? Year 1 Cash flow $1,200 Year 2 Cash flow ? Year 3 Cash flow $2,400 Year 4 Cash flow $2,600;4.3 Compounding Periods;Effective Annual Rates of Interest;Find the Effective Annual Rate (EAR) of an 18% APR loan that is compounded monthly. What w