Financial Management: Principles and Applications, 13/e

Part 2 Valuation of Financial Assets

Chapter 5 The Time Value of Money

The Basics

Chapter Outline

1. 5.1 Using Timelines to Visualize Cash Flows (pgs. 130–131)

   1. Objective 1. Construct cash flow timelines to organize your analysis of problems involving the time value of money.

2. 5.2 Compounding and Future Value (pgs. 132–139)

   1. Objective 2. Understand compounding and calculate the future value of cash flows using mathematical formulas, a financial calculator, and an Excel spreadsheet.

3. 5.3 Discounting and Present Value (pgs. 139–144)

   1. Objective 3. Understand discounting and calculate the present value of cash flows using mathematical formulas, a financial calculator, and an Excel spreadsheet.

4. 5.4 Making Interest Rates Comparable (pgs. 145 ...