This document discusses the time value of money concepts of interest, present value, and future value. It provides examples of calculating simple and compound interest, as well as the present and future value of single deposits and annuities. Formulas for simple and compound interest, present value, future value, ordinary annuities, and annuities due are presented along with examples of applying the concepts and formulas to story problems. Tables of interest rate factors are also included to allow for lookup of present and future values.
This document provides an overview of time value of money concepts including simple and compound interest, future and present value, and annuities. Key points covered include:
- Compound interest earns interest on previous interest amounts as well as the principal, resulting in higher total returns over time compared to simple interest.
- Future value and present value formulas allow calculating the value of a single deposit or withdrawal at a future or present point in time using a given interest rate.
- Annuities represent a series of equal periodic cash flows, and formulas are provided to calculate the future and present value of ordinary annuities and annuities due.
The document discusses the time value of money and compound interest. It explains key concepts like simple vs compound interest, present and future value, and ordinary annuities. Examples are provided to demonstrate how to calculate future and present value of single deposits and annuities using formulas, tables and calculators. The reader will learn how interest allows money to grow over time and the importance of compounding interest.
This document provides an overview of chapter 3 which covers the time value of money. It discusses key concepts like simple and compound interest, present and future value, and annuities. The learning objectives are to understand how interest rates can be used to adjust the value of cash flows over time and calculate future and present values for various cash flow scenarios. Formulas, examples, and the use of interest tables and calculators are presented.
This document discusses the time value of money concepts including simple and compound interest, future and present value, and annuities. It provides formulas, examples, and explanations of how to calculate future and present value for single deposits and annuities using a financial calculator or tables. Key points covered include the differences between simple and compound interest, ordinary annuities versus annuities due, and using the future and present value of interest factors tables to solve time value of money problems.
The document provides an overview of key concepts related to the time value of money, including compound and simple interest, present and future value calculations, and annuities. It outlines learning objectives, defines key terms, shows examples of calculations, and provides guidance on using formulas and tables to solve time value of money problems for single deposits, annuities, and other scenarios.
The document provides an overview of time value of money concepts including compound and simple interest, present and future value calculations, and annuities. It defines key terms, shows examples of calculations using formulas and tables, and step-by-step solutions to practice problems involving deposits, loans, and determining unknown values. The document aims to help readers understand how to adjust cash flows to a single point in time using interest rates and calculate future and present values.
The document discusses time value of money concepts including compound interest, present value, future value, and annuities. It provides examples of how to calculate:
- Future and present value of a single cash flow using the compound interest formula and present/future value tables
- Future and present value of an ordinary annuity and annuity due using the annuity formulas and present/future value tables
- Number of periods for a cash flow to double using the rule of 72
https://rb.gy/n89u77
Discuss the role of time value in finance, the use of computational tools, and the basic patterns of cash flow. Understand the concepts of future value and present value, their calculation for single amounts, and the relationship between them.
This document provides an overview of time value of money concepts including simple and compound interest, future and present value, and annuities. Key points covered include:
- Compound interest earns interest on previous interest amounts as well as the principal, resulting in higher total returns over time compared to simple interest.
- Future value and present value formulas allow calculating the value of a single deposit or withdrawal at a future or present point in time using a given interest rate.
- Annuities represent a series of equal periodic cash flows, and formulas are provided to calculate the future and present value of ordinary annuities and annuities due.
The document discusses the time value of money and compound interest. It explains key concepts like simple vs compound interest, present and future value, and ordinary annuities. Examples are provided to demonstrate how to calculate future and present value of single deposits and annuities using formulas, tables and calculators. The reader will learn how interest allows money to grow over time and the importance of compounding interest.
This document provides an overview of chapter 3 which covers the time value of money. It discusses key concepts like simple and compound interest, present and future value, and annuities. The learning objectives are to understand how interest rates can be used to adjust the value of cash flows over time and calculate future and present values for various cash flow scenarios. Formulas, examples, and the use of interest tables and calculators are presented.
This document discusses the time value of money concepts including simple and compound interest, future and present value, and annuities. It provides formulas, examples, and explanations of how to calculate future and present value for single deposits and annuities using a financial calculator or tables. Key points covered include the differences between simple and compound interest, ordinary annuities versus annuities due, and using the future and present value of interest factors tables to solve time value of money problems.
The document provides an overview of key concepts related to the time value of money, including compound and simple interest, present and future value calculations, and annuities. It outlines learning objectives, defines key terms, shows examples of calculations, and provides guidance on using formulas and tables to solve time value of money problems for single deposits, annuities, and other scenarios.
The document provides an overview of time value of money concepts including compound and simple interest, present and future value calculations, and annuities. It defines key terms, shows examples of calculations using formulas and tables, and step-by-step solutions to practice problems involving deposits, loans, and determining unknown values. The document aims to help readers understand how to adjust cash flows to a single point in time using interest rates and calculate future and present values.
The document discusses time value of money concepts including compound interest, present value, future value, and annuities. It provides examples of how to calculate:
- Future and present value of a single cash flow using the compound interest formula and present/future value tables
- Future and present value of an ordinary annuity and annuity due using the annuity formulas and present/future value tables
- Number of periods for a cash flow to double using the rule of 72
https://rb.gy/n89u77
Discuss the role of time value in finance, the use of computational tools, and the basic patterns of cash flow. Understand the concepts of future value and present value, their calculation for single amounts, and the relationship between them.
The document describes key concepts related to the time value of money, including compound and simple interest, present and future value calculations, and valuation of annuities. It defines ordinary and annuity due cash flows and provides formulas and examples for calculating future and present value of single amounts, as well as future and present value of annuities using interest tables.
This document discusses the time value of money concept through examples of simple and compound interest, present and future value calculations for single amounts, annuities, and mixed cash flows. It provides formulas, examples, and guidelines for solving time value of money problems involving deposits, loans, and returns over time discounted or compounded at given interest rates.
The document discusses time value of money concepts including compound interest, present value, future value, and annuities. It provides examples of using the compound interest formula, present value tables, future value tables, and annuity formulas to calculate future and present values over time periods with different interest rates. Steps for solving time value of money problems are outlined.
1. The document discusses the concepts of time value of money, interest rates, and different types of interest including simple and compound interest.
2. It provides formulas for calculating future value and present value using simple and compound interest, and examples of applying these formulas.
3. The document also covers annuities, explaining the differences between ordinary annuities and annuities due. It provides formulas and examples for calculating future and present value of both types of annuities.
The time value of money is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. Time Value of Money is also sometimes referred to as present discounted value.
The document discusses various time value of money concepts including future value, present value, perpetuities, and annuities. It provides examples of calculations for future and present value of a single sum, as well as present value calculations for perpetuities and annuities. Uneven cash flows are discussed as being the sum of present values of regular cash flows. Key steps in solving time value problems are identified as drawing the timeline, identifying the cash flows, determining what value is being calculated, and using the appropriate formula.
The document discusses time value of money concepts including future value, present value, compound interest, and annuities. It provides examples of using the compound interest formula and financial calculators to solve for future value, present value, interest rates, number of periods, and payment amounts of cash flows. It also discusses amortization tables and constructing an amortization schedule for a loan.
Present value: The current worth of a future sum of money or stream of cash flows, given a specified rate of return. Future cash flows are "discounted" at the discount rate; the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to valuing future cash flows properly, whether they be earnings or obligations.[2]
Present value of an annuity: An annuity is a series of equal payments or receipts that occur at evenly spaced intervals. Leases and rental payments are examples. The payments or receipts occur at the end of each period for an ordinary annuity while they occur at the beginning of each period for an annuity due.[3]
Present value of a perpetuity is an infinite and constant stream of identical cash flows.[4]
Compound interest (or compounding interest) is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Thought to have originated in 17th-century Italy, compound interest can be thought of as “interest on interest,” and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount. The rate at which compound interest accrues depends on the frequency of compounding; the higher the number of compounding periods, the greater the compound interest. Thus, the amount of compound interest accrued on $100 compounded at 10% annually will be lower than that on $100 compounded at 5% semi-annually over the same time period.
Basic Time Value of Money Formula and Example
Depending on the exact situation in question, the TVM formula may change slightly. For example, in the case of annuity or perpetuity payments, the generalized formula has additional or less factors. But in general, the most fundamental TVM formula takes into account the following variables:
FV = Future value of money
PV = Present value of money
i = interest rate
n = number of compounding periods per year
t = number of years
Based on these variables, the formula for TVM is:
FV = PV x (1 + (i / n)) ^ (n x t)
For example, assume a sum of $10,000 is invested for one year at 10% interest. The future value of that money is:
FV = $10,000 x (1 + (10% / 1) ^ (1 x 1) = $11,000
The formula can also be rearranged to find the value of the future sum in present day dollars. For example, the value of $5,000 one year from today, compounded at 7% interest, is:
PV = $5,000 / (1 + (7% / 1) ^ (1 x 1) = $4,673
This document discusses the time value of money concept in finance. It defines key terms like present value, future value, simple interest, and compound interest. It provides formulas for calculating future value and present value of single deposits. Examples are given to demonstrate calculating interest using simple interest formulas versus compound interest formulas. Tables are presented to allow looking up interest factors instead of using formulas. The document also introduces the concepts of amortization schedules and using a financial calculator for time value of money problems.
This document discusses the time value of money concepts of simple and compound interest, present and future value, and annuities. It provides formulas and examples for calculating future and present value of single deposits using tables or calculators. It also covers calculating the future value of annuities and using annuity tables. Key concepts covered include compound interest earning interest on interest, and the higher growth it provides over time compared to simple interest.
* A (periodic cash flow) = Rs. 270
* i (interest rate) = 12% = 0.12
* Using the formula: PVperpetuity = A/i
* PVperpetuity = Rs. 270/0.12 = Rs. 2,250
Therefore, the present value of the perpetuity is Rs. 2,250.
This document provides an overview of time value of money concepts including simple and compound interest, present and future value, and annuities. Some key points include:
- Compound interest earns interest on interest, resulting in higher total interest compared to simple interest over time.
- The future value of a single deposit or investment can be calculated using a formula that compounds the principal by the interest rate over multiple periods.
- The present value of a future amount can be calculated by discounting the future value back using the interest rate.
- Annuities represent a series of equal periodic payments or receipts, and their future or present value can be calculated using annuity formulas that take into account all
The document discusses the concept of time value of money and how to calculate future and present values of cash flows. It provides examples of calculating the future and present value of a single cash flow using formulas, tables, and a financial calculator. It also discusses calculating future and present values for annuities, as well as solving for unknown variables like interest rate or number of periods. Formulas, tables, and a calculator can all be used to solve these types of time value of money problems.
This document discusses the concepts of time value of money including future value and present value of single amounts and annuities. It provides formulas and examples to calculate future value, present value, and annuities. It also discusses topics like compound interest, rule of 72, sinking funds, and using capital recovery factor to calculate loan installments. Practice questions at the end test the reader's understanding of concepts like calculating future value of savings over 15 years and determining annual savings needed to accumulate a target amount over 10 years.
Time lines
Future value / Present value of lump sum
FV / PV of annuity
Perpetuities
Uneven CF stream
Compounding periods
Nominal / Effective / Periodic rates
Amortization
The document discusses time value of money concepts including future value, present value, ordinary annuities, annuities due, and loan amortization. It provides formulas for calculating future value, present value, and annuities in various scenarios. It also discusses the effects of more frequent compounding periods on effective annual rates of return.
The document provides an overview of time value of money concepts including future value, present value, annuities, rates of return, and amortization. It discusses timelines, formulas, and calculator methods for solving future and present value problems. It also covers effective interest rates, loan amortization schedules, and partial prepayments of loans.
- The document discusses different cash flow patterns including single amounts, annuities, and mixed streams.
- It then provides examples of calculating future values of cash flows using compound interest formulas, including deposits into money market accounts and evaluating annuity streams.
- The key considerations are determining the present and future values, interest rates, and time periods in order to select the more attractive cash flow option.
This document provides an overview of the time value of money concepts. It defines key terms like present value, future value, and annuities. It explains the differences between simple and compound interest and how to calculate future and present value for single deposits and streams of cash flows. The document also demonstrates how to use interest tables and financial calculators to solve time value of money problems. Overall, the document serves as an introduction to fundamental time value of money and interest rate concepts.
Total Quality Management (TQM) is a management approach focused on meeting customer needs and improving processes. The document discusses the history and key thinkers in TQM, including Deming, Juran, Ishikawa, and Crosby. It also covers the Baldrige National Quality Program established in 1987 to recognize excellence through criteria in leadership, strategic planning, customer/market focus, information/analysis, human resources, process management and business results. The Baldrige Award has become a standard for quality excellence pursued by many large corporations.
Q&As on business and collective bargaining.pdfKevin117905
This document contains a series of questions and answers about collective bargaining and business. It discusses why collective bargaining is important for both workers and businesses. It allows issues to be settled through dialogue rather than confrontation, and provides benefits to the enterprise, stakeholders, and society. The document also provides guidance on how companies can uphold collective bargaining rights, such as by recognizing unions, bargaining in good faith, and providing worker representatives with necessary facilities and information. It discusses the importance of negotiation and concluding collective agreements.
The document describes key concepts related to the time value of money, including compound and simple interest, present and future value calculations, and valuation of annuities. It defines ordinary and annuity due cash flows and provides formulas and examples for calculating future and present value of single amounts, as well as future and present value of annuities using interest tables.
This document discusses the time value of money concept through examples of simple and compound interest, present and future value calculations for single amounts, annuities, and mixed cash flows. It provides formulas, examples, and guidelines for solving time value of money problems involving deposits, loans, and returns over time discounted or compounded at given interest rates.
The document discusses time value of money concepts including compound interest, present value, future value, and annuities. It provides examples of using the compound interest formula, present value tables, future value tables, and annuity formulas to calculate future and present values over time periods with different interest rates. Steps for solving time value of money problems are outlined.
1. The document discusses the concepts of time value of money, interest rates, and different types of interest including simple and compound interest.
2. It provides formulas for calculating future value and present value using simple and compound interest, and examples of applying these formulas.
3. The document also covers annuities, explaining the differences between ordinary annuities and annuities due. It provides formulas and examples for calculating future and present value of both types of annuities.
The time value of money is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. Time Value of Money is also sometimes referred to as present discounted value.
The document discusses various time value of money concepts including future value, present value, perpetuities, and annuities. It provides examples of calculations for future and present value of a single sum, as well as present value calculations for perpetuities and annuities. Uneven cash flows are discussed as being the sum of present values of regular cash flows. Key steps in solving time value problems are identified as drawing the timeline, identifying the cash flows, determining what value is being calculated, and using the appropriate formula.
The document discusses time value of money concepts including future value, present value, compound interest, and annuities. It provides examples of using the compound interest formula and financial calculators to solve for future value, present value, interest rates, number of periods, and payment amounts of cash flows. It also discusses amortization tables and constructing an amortization schedule for a loan.
Present value: The current worth of a future sum of money or stream of cash flows, given a specified rate of return. Future cash flows are "discounted" at the discount rate; the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to valuing future cash flows properly, whether they be earnings or obligations.[2]
Present value of an annuity: An annuity is a series of equal payments or receipts that occur at evenly spaced intervals. Leases and rental payments are examples. The payments or receipts occur at the end of each period for an ordinary annuity while they occur at the beginning of each period for an annuity due.[3]
Present value of a perpetuity is an infinite and constant stream of identical cash flows.[4]
Compound interest (or compounding interest) is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Thought to have originated in 17th-century Italy, compound interest can be thought of as “interest on interest,” and will make a sum grow at a faster rate than simple interest, which is calculated only on the principal amount. The rate at which compound interest accrues depends on the frequency of compounding; the higher the number of compounding periods, the greater the compound interest. Thus, the amount of compound interest accrued on $100 compounded at 10% annually will be lower than that on $100 compounded at 5% semi-annually over the same time period.
Basic Time Value of Money Formula and Example
Depending on the exact situation in question, the TVM formula may change slightly. For example, in the case of annuity or perpetuity payments, the generalized formula has additional or less factors. But in general, the most fundamental TVM formula takes into account the following variables:
FV = Future value of money
PV = Present value of money
i = interest rate
n = number of compounding periods per year
t = number of years
Based on these variables, the formula for TVM is:
FV = PV x (1 + (i / n)) ^ (n x t)
For example, assume a sum of $10,000 is invested for one year at 10% interest. The future value of that money is:
FV = $10,000 x (1 + (10% / 1) ^ (1 x 1) = $11,000
The formula can also be rearranged to find the value of the future sum in present day dollars. For example, the value of $5,000 one year from today, compounded at 7% interest, is:
PV = $5,000 / (1 + (7% / 1) ^ (1 x 1) = $4,673
This document discusses the time value of money concept in finance. It defines key terms like present value, future value, simple interest, and compound interest. It provides formulas for calculating future value and present value of single deposits. Examples are given to demonstrate calculating interest using simple interest formulas versus compound interest formulas. Tables are presented to allow looking up interest factors instead of using formulas. The document also introduces the concepts of amortization schedules and using a financial calculator for time value of money problems.
This document discusses the time value of money concepts of simple and compound interest, present and future value, and annuities. It provides formulas and examples for calculating future and present value of single deposits using tables or calculators. It also covers calculating the future value of annuities and using annuity tables. Key concepts covered include compound interest earning interest on interest, and the higher growth it provides over time compared to simple interest.
* A (periodic cash flow) = Rs. 270
* i (interest rate) = 12% = 0.12
* Using the formula: PVperpetuity = A/i
* PVperpetuity = Rs. 270/0.12 = Rs. 2,250
Therefore, the present value of the perpetuity is Rs. 2,250.
This document provides an overview of time value of money concepts including simple and compound interest, present and future value, and annuities. Some key points include:
- Compound interest earns interest on interest, resulting in higher total interest compared to simple interest over time.
- The future value of a single deposit or investment can be calculated using a formula that compounds the principal by the interest rate over multiple periods.
- The present value of a future amount can be calculated by discounting the future value back using the interest rate.
- Annuities represent a series of equal periodic payments or receipts, and their future or present value can be calculated using annuity formulas that take into account all
The document discusses the concept of time value of money and how to calculate future and present values of cash flows. It provides examples of calculating the future and present value of a single cash flow using formulas, tables, and a financial calculator. It also discusses calculating future and present values for annuities, as well as solving for unknown variables like interest rate or number of periods. Formulas, tables, and a calculator can all be used to solve these types of time value of money problems.
This document discusses the concepts of time value of money including future value and present value of single amounts and annuities. It provides formulas and examples to calculate future value, present value, and annuities. It also discusses topics like compound interest, rule of 72, sinking funds, and using capital recovery factor to calculate loan installments. Practice questions at the end test the reader's understanding of concepts like calculating future value of savings over 15 years and determining annual savings needed to accumulate a target amount over 10 years.
Time lines
Future value / Present value of lump sum
FV / PV of annuity
Perpetuities
Uneven CF stream
Compounding periods
Nominal / Effective / Periodic rates
Amortization
The document discusses time value of money concepts including future value, present value, ordinary annuities, annuities due, and loan amortization. It provides formulas for calculating future value, present value, and annuities in various scenarios. It also discusses the effects of more frequent compounding periods on effective annual rates of return.
The document provides an overview of time value of money concepts including future value, present value, annuities, rates of return, and amortization. It discusses timelines, formulas, and calculator methods for solving future and present value problems. It also covers effective interest rates, loan amortization schedules, and partial prepayments of loans.
- The document discusses different cash flow patterns including single amounts, annuities, and mixed streams.
- It then provides examples of calculating future values of cash flows using compound interest formulas, including deposits into money market accounts and evaluating annuity streams.
- The key considerations are determining the present and future values, interest rates, and time periods in order to select the more attractive cash flow option.
This document provides an overview of the time value of money concepts. It defines key terms like present value, future value, and annuities. It explains the differences between simple and compound interest and how to calculate future and present value for single deposits and streams of cash flows. The document also demonstrates how to use interest tables and financial calculators to solve time value of money problems. Overall, the document serves as an introduction to fundamental time value of money and interest rate concepts.
Total Quality Management (TQM) is a management approach focused on meeting customer needs and improving processes. The document discusses the history and key thinkers in TQM, including Deming, Juran, Ishikawa, and Crosby. It also covers the Baldrige National Quality Program established in 1987 to recognize excellence through criteria in leadership, strategic planning, customer/market focus, information/analysis, human resources, process management and business results. The Baldrige Award has become a standard for quality excellence pursued by many large corporations.
Q&As on business and collective bargaining.pdfKevin117905
This document contains a series of questions and answers about collective bargaining and business. It discusses why collective bargaining is important for both workers and businesses. It allows issues to be settled through dialogue rather than confrontation, and provides benefits to the enterprise, stakeholders, and society. The document also provides guidance on how companies can uphold collective bargaining rights, such as by recognizing unions, bargaining in good faith, and providing worker representatives with necessary facilities and information. It discusses the importance of negotiation and concluding collective agreements.
The document provides a template recognition and procedural agreement between a trade union (Unite) and an employer. The template covers key areas such as objectives of the agreement, scope of recognition, union representation and facilities, joint consultation and negotiation procedures, and grievance resolution processes. It aims to help Unite representatives negotiate formal recognition from employers and establish effective processes for representation, collective bargaining, and dispute avoidance and resolution.
1. Identify potential risks using techniques like a risk breakdown structure, brainstorming, or reviewing historical data. Key risk categories include technical, schedule, budget, and regulatory compliance.
2. Analyze the probability and impact of identified risks using a risk matrix. Prioritize risks based on their probability and potential impact.
3. Develop risk responses such as contingency plans, risk mitigation actions, and risk monitoring procedures. Assign roles for risk monitoring and response implementation.
4. Create a risk register/log to track identified risks, analysis results, assigned roles, and ongoing status. Meet regularly to
This document discusses the key concepts of labour law. It outlines the objectives of labour legislations as establishing social, political and economic justice; protecting weaker workers; maintaining industrial peace; and ensuring human rights. The principles of labour legislations are described as social justice, equity and security. Social justice means equitable distribution of profits between owners and workers, while protecting worker health and safety. Social equality provides flexibility to adjust to industrial needs. Social security involves collective action against social risks. The scope of labour law covers industrial relations, health and safety standards, employment standards, and workplace issues like wages, hours and dismissal procedures.
This chapter outlines the key aspects of product design and development. It discusses the characteristics of successful products, who is involved in the development process, and the typical duration and costs. It also covers some of the main challenges and how structured development methods and organizational realities can impact projects. The chapter concludes by introducing some of the major steps in a typical product development process.
The document discusses key financial statements used for corporate reporting:
1) The balance sheet provides a snapshot of a firm's assets, liabilities, and equity on a given date. It shows what the firm owns and how it is financed.
2) The income statement measures financial performance over a period by calculating revenues earned and expenses incurred. It determines net income.
3) The statement of cash flows explains changes in a firm's cash balance by outlining cash flows from operating, investing, and financing activities. It is important because net income does not always reflect actual cash flow.
The document provides an introduction to basic accounting concepts including:
1) Accounting is the universal language of business and finance. It tracks assets, liabilities, and owner's equity through journal entries, ledger accounts, and financial statements.
2) The key financial statements are the balance sheet and income statement. The balance sheet provides a snapshot of financial position on a given date, showing assets, liabilities, and owner's equity. The income statement shows revenues and expenses over a period of time.
3) Accounts are classified as assets, liabilities, owner's equity, revenues, or expenses. The accounting equation states that assets always equal liabilities plus owner's equity. Proper record keeping and financial analysis
The accounting equation forms the basis of financial accounting and requires that assets always equal liabilities plus owners' equity. Transactions are analyzed to determine their impact on this equation. The balance sheet presents the accounting equation at a point in time, showing assets, liabilities, and owners' equity. The income statement and statement of owners' equity analyze changes over a period of time, with revenues and expenses impacting owners' equity on the income statement and investments and withdrawals impacting it on the statement of owners' equity.
This PowerPoint presentation discusses managing growth in small businesses. It covers the entrepreneur's leadership role, the distinctive features of small business management, the managerial tasks of entrepreneurs, and solutions to time pressure issues like using outside management assistance. The presentation addresses topics such as creating an organizational structure, controlling operations, planning, delegating, and communicating. It provides examples of leadership styles, factors that determine organizational span of control, and types of outside assistance available.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
2. 3-2
The Time Value of Money
The Interest Rate
Simple Interest
Compound Interest
Amortizing a Loan
Compounding More Than
Once per Year
3. 3-3
Obviously, $10,000 today.
You already recognize that there is
TIME VALUE TO MONEY!!
The Interest Rate
Which would you prefer -- $10,000
today or $10,000 in 5 years?
4. 3-4
TIME allows you the opportunity to
postpone consumption and earn
INTEREST.
Why TIME?
Why is TIME such an important
element in your decision?
5. 3-5
Types of Interest
Compound Interest
Interest paid (earned) on any previous
interest earned, as well as on the
principal borrowed (lent).
Simple Interest
Interest paid (earned) on only the original
amount, or principal, borrowed (lent).
6. 3-6
Simple Interest Formula
Formula SI = PxRxT
SI: Simple Interest
P0: Deposit today (t=0)
R: Interest Rate per Period
T: Number of Time Periods
7. 3-7
SI = P(R)(T)
= $1,000(.07)(2)
= $140
Simple Interest Example
Assume that you deposit $1,000 in an
account earning 7% simple interest for
2 years. What is the accumulated
interest at the end of the 2nd year?
8. 3-8
FV = P0 + SI
= $1,000 + $140
= $1,140
Future Value is the value at some future
time of a present amount of money, or a
series of payments, evaluated at a given
interest rate.
Simple Interest (FV)
What is the Future Value (FV) of the
deposit?
9. 3-9
The Present Value is simply the
$1,000 you originally deposited.
That is the value today!
Present Value is the current value of a
future amount of money, or a series of
payments, evaluated at a given interest
rate.
Simple Interest (PV)
What is the Present Value (PV) of the
previous problem?
11. 3-11
Assume that you deposit $1,000 at
a compound interest rate of 7% for
2 years.
Future Value
of Money
0 1 2
$1,000
FV2
7%
12. 3-12
FV1 = P0 (1+i)n = $1,000 (1.07)
= $1,070
Compound Interest
You earned $70 interest on your $1,000
deposit over the first year.
This is the same amount of interest you
would earn under simple interest.
Future Value
Single Deposit (Formula)
13. 3-13
FV1 = P0(1+i)1
FV2 = P0(1+i)2
General Future Value Formula:
FVn = P0 (1+i)n
or FVn = P0 (FVIFi,n) -- See Table I
General Future
Value Formula
etc.
14. 3-14
FVIFi,n is found on Table I
at the end of the book.
Valuation Using Table I
Period 6% 7% 8%
1 1.060 1.070 1.080
2 1.124 1.145 1.166
3 1.191 1.225 1.260
4 1.262 1.311 1.360
5 1.338 1.403 1.469
16. 3-16
Julie Miller wants to know how large her deposit
of $10,000 today will become at a compound
annual interest rate of 10% for 5 years.
Story Problem Example
0 1 2 3 4 5
$10,000
FV5
10%
17. 3-17
Calculation based on Table I:
FV5 = $10,000 (FVIF10%, 5)
= $10,000 (1.611)
= $16,110 [Due to Rounding]
Story Problem Solution
Calculation based on general formula:
FVn = P0 (1+i)n
FV5 = $10,000 (1+ 0.10)5
= $16,105.10
18. 3-18
We will use the “Rule-of-72”.
Double Your Money!!!
Quick! How long does it take to
double $5,000 at a compound rate
of 12% per year (approx.)?
19. 3-19
Approx. Years to Double = 72 / i%
72 / 12% = 6 Years
[Actual Time is 6.12 Years]
The “Rule-of-72”
Quick! How long does it take to
double $5,000 at a compound rate
of 12% per year (approx.)?
20. 3-20
The result indicates that a $1,000
investment that earns 12% annually
will double to $2,000 in 6.12 years.
Note: 72/12% = approx. 6 years
Solving the Period Problem
N I/Y PV PMT FV
Inputs
Compute
12 -1,000 0 +2,000
6.12 years
21. 3-21
Assume that you need $1,000 in 2 years.
Let’s examine the process to determine
how much you need to deposit today at a
discount rate of 7% compounded annually.
0 1 2
$1,000
7%
PV1
PV0
Present Value
Single Deposit (Graphic)
23. 3-23
PV0 = FV1 / (1+i)1
PV0 = FV2 / (1+i)2
General Present Value Formula:
PV0 = FVn / (1+i)n
or PV0 = FVn (PVIFi,n) -- See Table II
General Present
Value Formula
etc.
24. 3-24
PVIFi,n is found on Table II
at the end of the book.
Valuation Using Table II
Period 6% 7% 8%
1 .943 .935 .926
2 .890 .873 .857
3 .840 .816 .794
4 .792 .763 .735
5 .747 .713 .681
26. 3-26
Julie Miller wants to know how large of a
deposit to make so that the money will
grow to $10,000 in 5 years at a discount
rate of 10%.
Story Problem Example
0 1 2 3 4 5
$10,000
PV0
10%
27. 3-27
Calculation based on general formula:
PV0 = FVn / (1+i)n
PV0 = $10,000 / (1+ 0.10)5
= $6,209.21
Calculation based on Table I:
PV0 = $10,000 (PVIF10%, 5)
= $10,000 (.621)
= $6,210.00 [Due to Rounding]
Story Problem Solution
28. 3-28
Solving the PV Problem
N I/Y PV PMT FV
Inputs
Compute
5 10 0 +10,000
-6,209.21
The result indicates that a $10,000
future value that will earn 10% annually
for 5 years requires a $6,209.21 deposit
today (present value).
29. 3-29
Types of Annuities
Ordinary Annuity: Payments or receipts
occur at the end of each period.
Annuity Due: Payments or receipts
occur at the beginning of each period.
An Annuity represents a series of equal
payments (or receipts) occurring over a
specified number of equidistant periods.
31. 3-31
Parts of an Annuity
0 1 2 3
$100 $100 $100
(Ordinary Annuity)
End of
Period 1
End of
Period 2
Today Equal Cash Flows
Each 1 Period Apart
End of
Period 3
32. 3-32
Parts of an Annuity
0 1 2 3
$100 $100 $100
(Annuity Due)
Beginning of
Period 1
Beginning of
Period 2
Today Equal Cash Flows
Each 1 Period Apart
Beginning of
Period 3
33. 3-33
FVAn = R(1+i)n-1 + R(1+i)n-2 +
... + R(1+i)1 + R(1+i)0
Overview of an
Ordinary Annuity -- FVA
R R R
0 1 2 n n+1
FVAn
R = Periodic
Cash Flow
Cash flows occur at the end of the period
i% . . .
34. 3-34
FVA3 = $1,000(1.07)2 +
$1,000(1.07)1 + $1,000(1.07)0
= $1,145 + $1,070 + $1,000
= $3,215
Example of an
Ordinary Annuity -- FVA
$1,000 $1,000 $1,000
0 1 2 3 4
$3,215 = FVA3
7%
$1,070
$1,145
Cash flows occur at the end of the period
35. 3-35
Hint on Annuity Valuation
The future value of an ordinary
annuity can be viewed as
occurring at the end of the last
cash flow period, whereas the
future value of an annuity due
can be viewed as occurring at
the beginning of the last cash
flow period.
37. 3-37
FVADn = R(1+i)n + R(1+i)n-1 +
... + R(1+i)2 + R(1+i)1
= FVAn (1+i)
Overview View of an
Annuity Due -- FVAD
R R R R R
0 1 2 3 n-1 n
FVADn
i% . . .
Cash flows occur at the beginning of the period
38. 3-38
FVAD3 = $1,000(1.07)3 +
$1,000(1.07)2 + $1,000(1.07)1
= $1,225 + $1,145 + $1,070
= $3,440
Example of an
Annuity Due -- FVAD
$1,000 $1,000 $1,000 $1,070
0 1 2 3 4
$3,440 = FVAD3
7%
$1,225
$1,145
Cash flows occur at the beginning of the period
41. 3-41
PVAn = R/(1+i)1 + R/(1+i)2
+ ... + R/(1+i)n
Overview of an
Ordinary Annuity -- PVA
R R R
0 1 2 n n+1
PVAn
R = Periodic
Cash Flow
i% . . .
Cash flows occur at the end of the period
42. 3-42
PVA3 = $1,000/(1.07)1 +
$1,000/(1.07)2 +
$1,000/(1.07)3
= $934.58 + $873.44 + $816.30
= $2,624.32
Example of an
Ordinary Annuity -- PVA
$1,000 $1,000 $1,000
0 1 2 3 4
$2,624.32 = PVA3
7%
$934.58
$873.44
$816.30
Cash flows occur at the end of the period
43. 3-43
Hint on Annuity Valuation
The present value of an ordinary
annuity can be viewed as
occurring at the beginning of the
first cash flow period, whereas
the future value of an annuity
due can be viewed as occurring
at the end of the first cash flow
period.
45. 3-45
PVADn = R/(1+i)0 + R/(1+i)1 + ... + R/(1+i)n-1
= PVAn (1+i)
Overview of an
Annuity Due -- PVAD
R R R R
0 1 2 n-1 n
PVADn
R: Periodic
Cash Flow
i% . . .
Cash flows occur at the beginning of the period
46. 3-46
PVADn = $1,000/(1.07)0 + $1,000/(1.07)1 +
$1,000/(1.07)2 = $2,808.02
Example of an
Annuity Due -- PVAD
$1,000.00 $1,000 $1,000
0 1 2 3 4
$2,808.02 = PVADn
7%
$ 934.58
$ 873.44
Cash flows occur at the beginning of the period
48. 3-48
1. Read problem thoroughly
2. Create a time line
3. Put cash flows and arrows on time line
4. Determine if it is a PV or FV problem
5. Determine if solution involves a single
CF, annuity stream(s), or mixed flow
6. Solve the problem
7. Check with financial calculator (optional)
Steps to Solve Time Value
of Money Problems
49. 3-49
General Formula:
FVn = PV0(1 + [i/m])mn
n: Number of Years
m: Compounding Periods per Year
i: Annual Interest Rate
FVn,m: FV at the end of Year n
PV0: PV of the Cash Flow today
Frequency of
Compounding
50. 3-50
Julie Miller has $1,000 to invest for 2
Years at an annual interest rate of
12%.
Annual FV2 = 1,000(1+ [.12/1])(1)(2)
= 1,254.40
Semi FV2 = 1,000(1+ [.12/2])(2)(2)
= 1,262.48
Impact of Frequency
52. 3-52
Effective Annual Interest Rate
The actual rate of interest earned
(paid) after adjusting the nominal
rate for factors such as the number
of compounding periods per year.
(1 + [ i / m ] )m - 1
Effective Annual
Interest Rate
53. 3-53
Basket Wonders (BW) has a $1,000
CD at the bank. The interest rate
is 6% compounded quarterly for 1
year. What is the Effective Annual
Interest Rate (EAR)?
EAR = ( 1 + 6% / 4 )4 - 1
= 1.0614 - 1 = .0614 or 6.14%!
BWs Effective
Annual Interest Rate
54. 3-54
1. Calculate the payment per period.
2. Determine the interest in Period t.
(Loan Balance at t-1) x (i% / m)
3. Compute principal payment in Period t.
(Payment - Interest from Step 2)
4. Determine ending balance in Period t.
(Balance - principal payment from Step 3)
5. Start again at Step 2 and repeat.
Steps to Amortizing a Loan
55. 3-55
Julie Miller is borrowing $10,000 at a
compound annual interest rate of 12%.
Amortize the loan if annual payments are
made for 5 years.
Step 1: Payment
PV0 = R (PVIFA i%,n)
$10,000 = R (PVIFA 12%,5)
$10,000 = R (3.605)
R = $10,000 / 3.605 = $2,774
Amortizing a Loan Example
56. 3-56
Amortizing a Loan Example
End of
Year
Payment Interest Principal Ending
Balance
0 --- --- --- $10,000
1 $2,774 $1,200 $1,574 8,426
2 2,774 1,011 1,763 6,663
3 2,774 800 1,974 4,689
4 2,774 563 2,211 2,478
5 2,775 297 2,478 0
$13,871 $3,871 $10,000
[Last Payment Slightly Higher Due to Rounding]
57. 3-57
The result indicates that a $10,000 loan
that costs 12% annually for 5 years and
will be completely paid off at that time
will require $2,774.10 annual payments.
Solving for the Payment
N I/Y PV PMT FV
Inputs
Compute
5 12 10,000 0
-2774.10
58. 3-58
Usefulness of Amortization
2. Calculate Debt Outstanding --
The quantity of outstanding
debt may be used in financing
the day-to-day activities of the
firm.
1. Determine Interest Expense --
Interest expenses may reduce
taxable income of the firm.