ScholarLens Back to search
2016•Unpublished venueRequires access

The Time Value of Money: Discounting and Net Present Values

Paul Asquith, Lawrence A. Weiss

Open publisher page 2 citations

Abstract

This discussion of the time value of money is the beginning of an overarching discussion of valuation. First, the time value of money itself is one of the most powerful concepts in finance, and it includes a discussion of the periodic interest rate and annuities. Next is a deep dive into net present value (NPV) and the internal rate of return (IRR). This is followed by the introduction of payback and a discussion of projects with unequal lives. The final concept covered is perpetuities. The tools covered here are dependent on the concepts of the time value of money, compounding, and discounting.

About this research paper

What this paper is about

This discussion of the time value of money is the beginning of an overarching discussion of valuation. First, the time value of money itself is one of the most powerful concepts in finance, and it includes a discussion of the periodic interest rate and annuities. Next is a deep dive into net present value (NPV) and the internal rate of return (IRR). This is followed by the introduction of payback and a discussion of projects with unequal lives. The final concept covered is perpetuities. The tools covered here are dependent on the concepts of the time value of money, compounding, and discounting.

Why it matters

OpenAlex reports 2 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

This discussion of the time value of money is the beginning of an overarching discussion of valuation. First, the time value of money itself is one of the most powerful concepts in finance, and it includes a discussion of the periodic interest rate and annuities. Next is a deep dive into net present value (NPV) and the internal rate of return (IRR). This is followed by the introduction of payback and a discussion of projects with unequal lives. The final concept covered is perpetuities. The tools covered here are dependent on the concepts of the time value of money, compounding, and discounting.

Key concepts: Time value of money, Discounting, Present value, Net present value, Valuation (finance), Perpetuity, Economics, Internal rate of return

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
The Time Value of Money: Discounting and Net Present Values — Research Paper | ScholarLens