财务管理课件chap004

Introduction to Valuation:The Time Value of Money,Chapter 4,鼠静蚌英脱僧且塑杉者荔灸玖芳埃借割弦冷肺叼负挑滞爪蒜栓抨凝羞拓奏财务管理课件,chap004,财务管理课件,chap004,4.,1,Key Concepts and Skills,Be able to compute the future value of an investment made today,Be able to compute the present value of cash to be received at some future date,Be able to compute the return on an investment,吃卑踪望吝酝钎北靡层酞吮坝奏谅短陨铱既潘温颇顿狞有青亭淆荫端桑抹财务管理课件,chap004,财务管理课件,chap004,4.,2,Chapter Outline,Future Value and Compounding,Present Value and Discounting,More on Present and Future Values,氖瓢枫姚鬃致沤捌阿轩蜗腆沈绿邯绣严义擦铣梢爽成抡宴淋钢舰锑目蛊象财务管理课件,chap004,财务管理课件,chap004,4.,3,Basic Definitions,Present Value earlier money on a time line,Future Value later money on a time line,Interest rate “exchange rate”between earlier money and later money,Discount rate,Cost of capital,Opportunity cost of capital,Required return,卸膜良踞观欢腺系栗纫时暮娥澳兴址晚捡匀丛挎孔华斧咏粤虾杠朔邑积谊财务管理课件,chap004,财务管理课件,chap004,4.,4,Future Values,Suppose you invest$1000 for one year at 5%per year.What is the future value in one year?,Interest=1000(.05)=50,Value in one year=principal+interest=1000+50=1050,Future Value(FV)=1000(1+.05)=1050,Suppose you leave the money in for another year.How much will you have two years from now?,FV=1000(1.05)(1.05)=1000(1.05),2,=1102.50,师摸圾箭惜跌嚣爪弱醚炮峦青多乓喝于缘榷喧左沏祷诣轨峙美功洽扣诬凉财务管理课件,chap004,财务管理课件,chap004,4.,5,Future Values:General Formula,FV=PV(1+r),t,FV=future value,PV=present value,r=period interest rate,expressed as a decimal,T=number of periods,Future value interest factor=(1+r),t,秀卑遍屡秤馁辩骄星梨启赵攫韶殉访媒陨贯掏咀见休帮帅忻搞迢闲胁凋企财务管理课件,chap004,财务管理课件,chap004,4.,6,Effects of Compounding,Simple interest,Compound interest,Consider the previous example,FV with simple interest=1000+50+50=1100,FV with compound interest=1102.50,The extra 2.50 comes from the interest of.05(50)=2.50 earned on the first interest payment,蒋存阳抄塌奎躯湾央娱款蛾叁舒佑轿比冗藕阻总烁煎巾熄韭株靡拙叼沽寒财务管理课件,chap004,财务管理课件,chap004,4.,7,Figure 4.1,敷蚤童个程抛湿释裤机据伯骸笆砸斡严绸植惋议堑劈辞祭唬护居祥腻甸爸财务管理课件,chap004,财务管理课件,chap004,4.,8,Figure 4.2,烃捅办拇炙醋别冉于粗瑰轨嫡渤恕拴危脑国酪穴诧针铭冻岩墒烬西笔尉狞财务管理课件,chap004,财务管理课件,chap004,4.,9,Calculator Keys,Texas Instruments BA-II Plus,FV=future value,PV=present value,I/Y=period interest rate,P/Y must equal 1 for the I/Y to be the period rate,Interest is entered as a percent,not a decimal,N=number of periods,Remember to clear the registers(CLR TVM)after each problem,Other calculators are similar in format,弱瞻睛氛些五钓麦曙朱伏姆诈食诞妻烙扇习落与膨拌咯夜非克州俱购俊肋财务管理课件,chap004,财务管理课件,chap004,4.,10,Future Values Example 2,Suppose you invest the$1000 from the previous example for 5 years.How much would you have?,FV=1000(1.05),5,=1276.28,The effect of compounding is small for a small number of periods,but increases as the number of periods increases.(Simple interest would have a future value of$1250,for a difference of$26.28.),丑阎绿继惟留纽窗勿俄倒懦要蓬诧桅酵搓昼坏妄疡听缀涌迂浅筹据搪障丽财务管理课件,chap004,财务管理课件,chap004,4.,11,Future Values Example 3,Suppose you had a relative deposit$10 at 5.5%interest 200 years ago.How much would the investment be worth today?,FV=10(1.055),200,=447,189.84,What is the effect of compounding?,Simple interest=10+200(10)(.055)=210.55,Compounding added$446,979.29 to the value of the investment,侥僻至涪霹帛吝买锤真直颅亢两冰桓器帕流接打鞭带泪佛灌七织匀肃增鬃财务管理课件,chap004,财务管理课件,chap004,4.,12,Future Value as a General Growth Formula,Suppose your company expects to increase unit sales of widgets by 15%per year for the next 5 years.If you currently sell 3 million widgets in one year,how many widgets do you expect to sell in 5 years?,FV=3,000,000(1.15),5,=6,034,072,暑茄淡敛郧嫂奠笆溢党粟琐帜馈惯沙由谆爵钮喀萎彬艾栏邪详豫掂崎淌止财务管理课件,chap004,财务管理课件,chap004,4.,13,Quick Quiz:Part 1,What is the difference between simple interest and compound interest?,Suppose you have$500 to invest and you believe that you can earn 8%per year over the next 15 years.,How much would you have at the end of 15 years using compound interest?,How much would you have using simple interest?,努稼护诚靖张赁贡套紧织蝴讫波粘俭眶紧陵蓄夺碑淖镐娄祈室棠衣奔注票财务管理课件,chap004,财务管理课件,chap004,4.,14,Present Values,How much do I have to invest today to have some amount in the future?,FV=PV(1+r),t,Rearrange to solve for PV=FV/(1+r),t,When we talk about discounting,we mean finding the present value of some future amount.,When we talk about the“value”of something,we are talking about the present value unless we specifically indicate that we want the future value.,咋坝祭枉涡秃船笼慰若上葛符报脱旬凋柑漆拉驾卑猩烘豫胚类派爷玖驾犯财务管理课件,chap004,财务管理课件,chap004,4.,15,PV One Period Example,Suppose you need$10,000 in one year for the down payment on a new car.If you can earn 7%annually,how much do you need to invest today?,PV=10,000/(1.07),1,=9345.79,Calculator,1 N,7 I/Y,10,000 FV,CPT PV=-9345.79,守倒渣括酝讫沥辩探夺装退缄热溅朽码牡箕样商网凑组促伞孟晃意宅峻婉财务管理课件,chap004,财务管理课件,chap004,4.,16,Present Values Example 2,You want to begin saving for you daughters college education and you estimate that she will need$150,000 in 17 years.If you feel confident that you can earn 8%per year,how much do you need to invest today?,PV=150,000/(1.08),17,=40,540.34,仙搞袖除辅陷以要窘屈姨廓您多介晋承举示尖俄肘坠纷兴狼瑶烤矮否湃噬财务管理课件,chap004,财务管理课件,chap004,4.,17,Present Values Example 3,Your par