ADM 537 Application of the Time Value of Money
Background Information
In this assignment, you will complete problems using Excel and the concepts of the time value of money for a single (or lump) sum, multiple cash flows, annuities and perpetuities, and amortization. Learning these tools will be beneficial for calculations in subsequent material in this course.
Instructions
1. In your textbook. Fundamentals of Corporate Finance, review:
a. Chapters 5, “Introduction to Valuation: The Time Value of Money”
b. Chapter 6, “Discounted Cash Flow Valuation”
2. Review the PowerPoint files Chapter 5 – Introduction to Valuation: The Time Value of Money.pptx and Chapter 6 – Discounted Cash Flow Valuation.pptx to help you further understand the chapters.
3. Using Excel, complete the following problems in the textbook:
a. Single Sum: Problems 2, 3, and 10 on pages 144 and 145
b. Series of Cash Flows: Problems 1–3 on page 182 and Problem 36 on page 185
c. Annuities and Perpetuities: Problems 10 and 11 on pages 182–183
d. Amortization: Problem 20 on page 183 and Problem 55 on page 187
4. When you have completed your assignment, save a copy for yourself and submit a copy to your instructor using the Dropbox.
5. This assignment is due by the end of the workshop.
The following media are not required, but may be helpful in understanding some of the concepts presented in this workshop:
Indiana Wesleyan University
No comments:
Post a Comment