Analyze annuity and perpetuity applications

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Reference no: EM132855256

Despite the claims of many scam artists and get-rich-quick gurus, there are very few real secrets to finance. However, if there is any special magic to be acquired through a study of finance, it would have to be the time value of money. The principles of the time value of money can take a modest salary, combined with discipline and time, and turn it into a considerable pile of wealth. The world's wealthiest people understand the incredible power of compound interest and the time value of money. It is also the basis for powerful discounted cash flow techniques that are essential to good decision making in business.

Upon successful completion of this assignment, you will be able to:

Question 1: Understand the basic principles of time value of money.

Question 2: Calculate present values, future values, and internal rates of return.

Question 3: Analyze annuity and perpetuity applications.

Question 4: Apply discounted cash flow principles and techniques to capital-budgeting problems.

Reference no: EM132855256

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