Time Value of Money: Useful Applications FLEXCAST

Overview

The Time Value of Money (TVM), a fundamental financial principle, explains the worth of money in relation to time; money received today is worth more than money received in the future. TVM has wide application; from personal financial decisions, and corporate finance, to real estate. For example, TVM calculations help 1) individuals decide how much to save and spend in order to reach a desired financial goal, 2) investors pick the mix of a portfolio, 3) businesses evaluate the future cash flow of capital budgeting projects, and 4) real estate investors determine what price should be paid for a property that generates an estimated series of income. Accountants should also have a working knowledge of TVM factors including compound interest, annuities, and present value because of their application to numerous types of business events and transactions. This course explains the TVM concepts and their application to different financial and investment situations. A series of examples are presented to illustrate the calculations in detail to allow you to learn the application procedure for making sound financial decisions.

Highlights

Fundamentals. Practical applications.

Prerequisites

None.

Designed For

CPAs.

Objectives

Recognize the concepts of TVM, compounding, and discounting. Calculate the present value and future value of various financial transactions. Recognize how TVM affects the loan amortization. Identify the application of TVM to bond valuation.

Preparation

None.

Notice

This is a FlexCast (no exam required) and may be viewed only Monday - Saturday, 5am - 5pm PT. You may take up to one year from the date of purchase to complete the course. Pause your FlexCast and resume at a convenient day during the hours above. Partial credit for 2+ credit courses: If you are unable to complete the course in one sitting, partial credit can be awarded (minimum of one credit). To earn the remaining credits, you must return later and start the course from the beginning. Use chat to ask questions of a subject matter expert during the program.