FINANCIAL MANAGEMENT

Description

This week we learned computations and the time value of money. Briefly explain the time value of money, its methods, and how it applies to NPV.
When computations are performed, it is important to justify your work by showing how the answer was determined via narrative, calculations, and formulas. Presentation is also very important and is a quality aspect in addition to utilizing a table to present data and answers.

How do you feel you are doing as we close out this unit?
Are you optimistic about your understanding of this week’s assignments?
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This week’s unit is about:

Unit 2: Cash Flows and Discount Cash Flow Analysis

Topics:

Time Value of Money
Net Present Value (NPV) Computations
Depreciation Expense

Learning Objectives:

By the end of this Unit, you will be able to:

Explain the time value of money in relation to Discounted cash flow (DCF)
Evaluate the NPV for a project involving expected future cash flows.
Explain Depreciation Expense in relation to DCF.

References to be used:
1- Chapter 2: https://kosalmath.files.wordpress.com/2010/08/strategic-financial-management.pdf

2- Read Chapter 6 – Pages 72-94
Read Chapter 7 – Pages 97-110
https://2012books.lardbucket.org/pdfs/finance-for-managers.pdf

3- https://smallbusiness.chron.com/impact-depreciation-expense-profitability-55349.html https://smallbusiness.chron.com/impact-depreciation-expense-profitability-55349.html