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PRESENT VALUE
**Topic: Present Value Calculation**
**Concept: ** Understand the concept of present value and how it is used to determine the value of future cash in today’s dollars.
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Present Value
The single most important idea in finance is present value. Investments that we make today produce revenue in the future. **Present value** tells us how much the prospect of future income is worth in today’s dollars. It does this by accounting for the time value of money.
**Objectives **
- Understand the concept of present value
- Understand the factors that are used in the PV formula
- Know how to use the PV formula
- Understand NPV
- Understand the factors that are used in the NPV formula
- Know and use the formula for NPV
- Understand opportunity cost of capital
**Suggested
Grades:**
Ninth Grade -
Tenth Grade - Eleventh Grade - Twelfth Grade - Adult Education
- Business Education |