Making Long-term Investment Decisions

When you have finished working through this chapter you should be able to Understand what is meant by the future value of an investment made now Calculate the future value of an amount invested at COMPOUND INTEREST Understand what is meant by the present value of a sum of money to be paid or received at some future date Calculate the present value of a future sum by discounting at an appropriate interest rate Use DISCOUNTED CASH FLOW (DCF) TECHNIQUES to appraise the return from long-term projects Understand what is meant by the time value of money Understand what is meant by the NET PRESENT value (NPV) of an investment Calculate the NPV of a project and be able to use PRESENT VALUE TABLES Understand what is meant by the internal rate OF RETURN (IRR) of an investment These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.