|
|
FINANCE BASICS
Mastering the Time Value of Money™
Targeted Skill Level: Basic
Duration: 1 - 2 hours
COURSE DESCRIPTION
The concept of the time value of money is a fundamental principle of corporate finance. Mastering the Time Value of Money™ focuses on this concept - that an amount of money is worth more if received today than if received tomorrow.
GOALS
After completing this course you will be able to:
- Calculate future values from a present value, and vice-versa
- Test the sensitivity of those calculations to changes in the discount rate and the timing and magnitude of the cash flows
- Relate the above to real-world financial projections
CASE SIMULATION
In the case simulation of Tulip-Bulb.com, you are the VP of Sales. You develop simple financial projections regarding pro forma sales and market share, using the principles of the time value of money.
INSTRUCTIONAL PATH CONTENT
- Overview of Finance Fundamentals
- Time Value of Money: Compounding vs. Discounting
- Compounding to Future Values
- Illustration of Compounding
- Algebra of Compounding
- Sensitivity of FV to Change in n
- Sensitivity of FV to a Change in PV
- Sensitivity of FV to a Change in I
- Mini-Case Simulation: TulipBulb.com
- Discounting to a Present Value
- Single Cash Flow: Illustration of Discounting
- Sensitivity of PV to Change in i
- Sensitivity of FV to a Change in I
- Series of Even Cash Flows: Illustration of Discounting
- Case simulation: TulipBulb.com
JUST-IN-TIME CONTENT
- Financial Glossary
- Theories Summarized
- Essentials of Corporate Finance
- Theory of Interest Rates
- Confidence in Projected Cash Flows
- Level of Risk and the Choice of Discount Rate
- Utility of the Discounted Cash Flow Analysis
- Decision Making Utility of Discounted Cash Flow Analysis and Net Present Value
- Are Net Present Value (NPV) and Internal Rate of Return (IRR) Interchangeable?
- Spreadsheet Tools
- Present Value Calculator
- Future Value Calculator
- Present Value of Future Cashflows Calculator
- Annuity Calculator
- Cashflow with a Terminal Value Other
CONTINUING EDUCATION CREDITS
- NASBA sponsored CPE credits
- Insurance CE credits in selected states
Presented in Interactive Directed Learning Model™
Available in English and Spanish
Call us at 610.388.0969 or use our convenient contact form.
| |
 |
