October 2011
Beginner
778 pages
36h 16m
English
book
Fundamentals of Corporate Finance, Second Edition
by Robert Parrino, David S. Kidwell, Thomas W. Bates
Content preview from Fundamentals of Corporate Finance, Second Edition
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5
The Time Value of Money
AFP/Getty Images, Inc.
Learning Objectives
Explain what the time value of money is and why it is so important in the field of finance.
Explain the concept of future value, including the meaning of the terms principal, simple interest, and compound interest, and use the future value formula to make business decisions.
Explain the concept of present value, how it relates to future value, and use the present value formula to make business decisions.
Discuss why the concept of compounding is not restricted to money, and use the future value formula to calculate growth rates.
When you purchase an automobile from a dealer, the decision of whether to pay cash or finance your purchase can affect the price you pay. For example, automobile manufacturers often offer customers a choice between a cash rebate and low-cost financing. Both alternatives affect the cost of purchasing an automobile; but one alternative can be worth more than the other.
To see why, consider ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.