Audience

Managers, prospective managers, and anyone else within an organization involved in making business decisions

Prerequisites

An understanding of the principles of business finance

Course Aim

To familiarize learners with the discipline of finance and the time value of money

Learning Objectives

Define the time value of money. Identify sources of risk. Explain diversification and its effect on risk. Define compounding. Calculate the future value of a dollar. Demonstrate the discounting process. Show the variations for finding interest and time. Calculate the present value of an ordinary annuity and an annuity due. Describe the procedure for solving time value of money problems. Solve basic time value of money problems. Compare two investments with different compounding periods.

Topics Covered

Fundamental Principles - The Time Value of Money - Value Maximization - Risk Aversion - Diversification Basic Calculations - Future Value of a Dollar - Present Value of a Dollar - Financial Equivalence - Future Value of an Annuity - Present Value of an Annuity - Hands-on: Applying Annuity Calculations Advanced Calculations - Applications - Hands-on: Amortizing a Loan - Nonannual Compounding - Periods of Less Than One Year

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