Slide 12-1 Future value Present value Rates of return Amortization Chapter 2 Time Value of Money Slide 2 2-2 Time lines show timing of cash flows. CF 0 CF 1 CF 3 CF 2 0123…

Slide 1FIN 3000 Chapter 6 Annuities Liuren Wu Slide 2 Overview 1. Annuities 2. Perpetuities 3. Complex Cash Flow Streams Learning objectives 1. Distinguish between an ordinary…

1. Chapter FiveTime Value of MoneyPrinciples of Managerial FinanceFirst Canadian EditionLawrence J. Gitman and Sean Hennessey© 2004 Pearson5-1 2. Learning GoalsLG1 – Discuss…

FNAN 301, fall 2009, final, solutions Quantitative: value of a growing perpetuity and return of a fixed perpetuity 1. You own two investments, A and B, that have a combined…

Slide 1Future value Present value Rates of return Amortization CHAPTER 2 Time Value of Money Slide 2 Introduction In fact, of all the concepts used in finance, none is more…

Slide 1 Future Value Present Value Annuities Different compounding Periods Adjusting for frequent compounding Effective Annual Rate (EAR) Chapter 5 5-1 Slide 2  You want…