公司理财第四章.pptxVIP

Introduction to Valuation: The Time Value of MoneyChapter 40 Key Concepts and SkillsBe able to compute the future value of an investment made todayBe able to compute the present value of cash to be received at some future dateBe able to compute the return on an investment1 Chapter OutlineFuture Value and CompoundingPresent Value and DiscountingMore on Present and Future Values2 Basic DefinitionsPresent Value – earlier money on a time lineFuture Value – later money on a time lineInterest rate – “exchange rate〞 between earlier money and later moneyDiscount rateCost of capitalOpportunity cost of