Explain npv and fv

Assignment Help Finance Basics
Reference no: EM13883881

You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock.

Upon completing your Net Present Value (NPV) & Future Value (FV) Training Program, employees should be able to:

Explain NPV and FV.

Describe the factors that are used in the NPV and the FV formulas.

Give an example of how to use the formulas for NPV and FV for a stock purchase.

Summarize the differences between the two formulas and the purpose of using each.

Develop a PowerPoint presentation that is 10 slides long (excluding title and reference slides) and covers each of the above topics. In the slide notes, include your explanations for each topic. MUST format the presentation according to APA style.

Verified Expert

The presentation explains the NPV and FV and it also describes the factors that are used in the NPV and the FV formulas. Moreover, it provides an example of how to use the formulas for NPV and FV for a stock purchase. Furthermore, it summarizes the differences between the two formulas and the purpose of using each. NPV stands for Net Present Value which is explained as the difference between the current values of the concerned cash inflows along with the current value of the cash outflows.FV stands for future value which is the desired amount to which the current investment will rise or grow over the time when it is placed within an account that pays the compound interest. There are few points which explain the differences between NPV and FV.

Reference no: EM13883881

Questions Cloud

How do textbooks portray john brow : According to Loeween, how do textbooks portray John Brown?
Exceeds their before tax costs of debt : Company A and Company B have the same tax rate, the same total assets, and the same basic earning power. Both companies have a basic earning power that exceeds their before tax costs of debt. However, Company A has a higher debt ratio.
Does it affect ethical concerns if the assignment is random : Write an abstract that describes a study in which regression is a threat to the inter- nal validity of the study. Be sure to describe what steps the researcher might take to account for regression as a threat.
Preliminary targets for cost of production and yields : Propose preliminary targets for cost of production and yields.
Explain npv and fv : Describe the factors that are used in the NPV and the FV formulas
What is the yen and euro cross rate : If the price of a U.S dollar is 110 Japanese yen and also 1.05 Euros what is the yen/euro cross rate? JPMorgan Chase reported total stock holders’ equity of $176106000000 on 12/31/2010. there were 3910294110 shares outstanding at that time but averag..
What type of threat to validity would clients'' diet change : Without his knowledge, some of his clients have decided to cut out carbohydrates in their diet with the hope of increasing their weight loss. What type of threat to validity would the clients' diet change introduce?
Draw a few stages of the l-type circuit model : Draw a few stages of the L-type circuit model and write down the two differential equations for the RL and RC parts of the stage, and solve these equations -
What would be the impact of poverty on the lives : What would be the impact of poverty on the lives of the children? How will the family's difficulty in meeting its basic subsistence needs translate into access to opportunities -education, jobs, health care- for the children later in life

Reviews

Write a Review

Finance Basics Questions & Answers

  Users of financial information

Differentiate between the different users of financial information.

  Impact of accounting for operating leases

Issuance of SI par value common stock at an amount greater than par value and donation of land by a governmental unit to a corporation

  Standard of currency

Between 1876 and 1913, gold was the standard of currency (each currency was convertible into gold at a specified rate). When World War 1 began in 1914, the gold standard was suspended. Right now, each country has their currency. If I am traveling..

  Roles of international financial institutions

Would you please define the roles of international financial institutions (e.g. IMF, World Bank, ADB, etc.) and describe how they are employed in global financing operations

  Management of personal finances

You've been asked by elderly relative to take over the management of her finances. She is in reasonably good health, and currently lives in a "life-care" facility that offers a wide range of living arrangements, from independent, assisted living a..

  What is wacc why is it so important in business valuation

What is WACC? Why is it so important in business valuation? Please estimate WACC for Anheuser in 2008 using the Excel templateattached. In your estimation of cost of equity, use either CAPM or Dividend Discount Model but make sure to justify your mod..

  Davidson company is a limited liability company it earned

davidson company is a limited liability company. it earned 100000 in its first year of operation. it may elect to be

  Problems of multinational enterprises

Examine the successes and problems of multinational enterprises (MNEs) in exploiting the opportunities in emerging markets.

  What is the effective annual rate of the loan

A firm engaged a one-year monthly pay $100,000 line of credit at 7.5 percent plus a 0.5 percent commitment fee on the unused portion of the line

  What is appropriate cost of capital to evaluate business

Verano is considering a purchase of another business using equity financing. What is the appropriate cost of capital to evaluate the business?

  Imagine that someone has offered you 1000 to buy your

imagine that you own a small local clothing store along the jersey shore boardwalk and decide that you want to engage

  Trevor price bought 10-year bonds issued by harvest foods

trevor price bought 10-year bonds issued by harvest foods five years ago for 950.97. the bonds make semiannual coupon

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd