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FIN301_Ch4
1. The document discusses the concept of time value of money and how an amount of money received today is worth more than the same amount received in the future due to factors like opportunity cost, inflation, and ability to invest and earn interest. 2. It provides examples of calculating future and present value using formulas, interest tables, calculators, and spreadsheets. The future value of a single cash flow is calculated as PV x (1+i)n, where PV is the present value, i is the interest rate, and n is the number of periods. The present value is calculated as FV x (1/(1+i))n, where FV is the future value.
