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.
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.
- 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
Ninth Grade -
Tenth Grade - Eleventh Grade - Twelfth Grade - Adult Education
- Business Education