Explaining net present value and future value

Assignment Help Financial Management

Reference no: EM131322231

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. You have been given the following objectives:

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

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 10- to 12-slide PowerPoint Presentation (excluding title slide and reference slide) that cover each of the above topics. In the slide notes, include your explanations for each topic above. You must use a minimum of two scholarly sources. Format the presentation and cite your resources according to the APA style guide as outlined in the Ashford Writing Center.

Reference no: EM131322231

Questions Cloud

Increase at an increasing rate as level of debt rises : Which is NOT a reason why the costs of debt and equity might increase at an increasing rate as the level of debt rises? Any information or signaling effect of the dividend would occur on the declaration date. A stock split is a large stock dividend s..

Firms with high levels of debt will have more business risk : The WACC is the required return on the firm’s capital budgeting projects of average risk. Financial Risk is the additional risk resulting from the use of debt. Default Risk is the likelihood that the company will go bankrupt prior to the bond’s matur..

What is the required return on the corporation stock : A corporation has 11,000,000 shares of stock outstanding at a price of $40 per share. They just paid a dividend of $2 and the dividend is expected to grow by 4% per year forever. What is the required return on the corporation’s stock? What is the yie..

What is the value of the bond : Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 7.8%, what is the value of the bond?

Explaining net present value and future value : 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) and F..

What is dollar amount of dividends : Lee purchased a stock one year ago for $25. The stock is now worth $33, and the total return to Lee for owning the stock was 0.38. What is the dollar amount of dividends that he received for owning the stock during the year?

Design a crisis management system for bridgestone : Even though its name sounds decidedly Western, Bridgestone Corporation, one of the world's largest tire manufacturers, is a Japanese company through and through. What went wrong? Imagine that it is a few years ago, before there was any trouble, and y..

What is the bond nominal annual yield to maturity : Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 7.2% with semiannual payments of $36, and a par value of $1,000. The price of each bond in the issue is $1,170.00. The bond issue is callable in 5 years a..

The global financial system is plunged into crisis : Vietnam's economy, which started overheating months ago, has begun to stabilize, but experts warn the government to stay the course as the global financial system is plunged into crisis. Suppose you were the Vietnamese finance minister, what would yo..

User Account

All Pages