Present Value and Future Value Tables Table A-1 Future Value Interest Factors for One Dollar Compounded at k Percent for n Periods: FVIF k,n = (1 + k) n ?Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 20% 24% 25% 30% Read more…
Net Present Value Last Time We spent the time developing our basic approach to DCF analysis. We discussed: The importance of a financial market to the economy and why investors receive interest (compensation) for saving/lending. The usefulness of the price from this market for decision making concerning real investments. Now Read more…
Net Present Value Analysis – Converting Wheat to Native Range For investment decisions and decisions that have financial impacts spanning more than one year, a more appropriate tool for decision-making is one called net present value (NPV). This technique uses a discount factor to put income and expenses in future Read more…
Benefit-Cost Measures Lecture Goals: Three BCA tools: Net Present Value (NPV) NPV Formula Key Point NPV Example Benefit Cost Ratio (BCR) BCR Formula Key Point BCR Example Internal Rate of Return (IRR) IRR Formula Key Point IRR Example Advantages of BCA Disadvantages of BCA
Chapter 18 Real Estate Finance Tools: Present Value and Mortgage Mathematics Major Topics Introduction to the Time Value of Money Present & Future Value of a Single Sum PV & FV over Multiple Periods of Time (Contd.) PV of an Annuity PV of Annuity (Contd.) Calculating a Loan Balance Calculating Read more…