Finance

Time Value of Money: Useful Applications - Part 2 v3.0

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.

Learning 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 
  • Identify different techniques used to evaluate business investments


Prerequisites/Advanced Preparation:

Basic Accounting and Math


Speaker / Author:

Steve Spafford, MBA, CPA, has over 20 years' experience as a CPA working with large public accounting firms, and in numerous executive roles at multinational public corporations. He is a member of DeltaCPE LLC, a leading publisher of continuing professional education courses for CPAs, and has edited CPA ethics courses provided to over 35 states.

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Price (USD)

Standard: $24.95

Details

Course Code : 99DEL22-v3

Release Date : 03/04/2024
Expire Date : 02/28/2026
Credits :
CPE 1.00
QAS 1.00
Length : 50min
Course Level : Overview
Course Type : QAS Self-Study
Passing Grade : 70%
Format Type : eLearning
Mobile Compatible
Field Of Study : Finance
Category : Finance/Management
Theme : Corporate Finance

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