
Welcome. Thank you for attending this course. We trust you will be able to gain more knowledge relating to the Net Present Value (NPV) and Time Value of Money Calculations in this course. In this video, we will introduce the course and its objectives.
We cover the Background to Finance and how this relates to Financial Mathematics, Time Value of Money and Net Present Value.
We consider two different options from a financial decision-making point of view.
We explain the simple Time Value of Money concept with diagrams covering Present and Future Values.
We discuss and explain the purpose and need for Net Present Value calculations in the decision-making process.
We provide the equation for Net Present Value (NPV) and we cover the decision criteria when applying NPV to practical scenarios.
All the basic, most important Time Value of Money principles are discussed and explained in detail.
We differentiate between Simple and Compound Interest.
We cover example calculations.
We contrast Simple versus Compound Interest.
We explain what annuities are and how to calculate Present or Future Values for annuities.
We take the Net Present Value (NPV) theory further by completing a worked example.
We explain the importance of NPV and how it is applied to the decision-making process.
Additional video covering some formulae that can be used in Microsoft Excel to calculate PV, FV and NPV.
A brief summary to conclude Net Present Value calculations and the importance of Time Value of Money when making financial decisions.
Master the Net Present Value theory and calculations by understanding the basic time value of money principles. You will be introduced to the background of Finance & Net Present Value and you will learn the skills needed for the calculating and interpreting the Net Present Values. These calculation skills are important fundamentals that can be applied to basic and more advanced levels of Finance.
Even if you have no prior knowledge or understanding of Finance and/or Mathematics, this course will provide you with the most important Net Present Value skills. At the end of the course, you will be able to describe what Net Present Value is. You will also be able to calculate Net Present Value and you will know how to apply the calculations for answering a decision-making/analytical question.
This course was designed for everyone from any background who wants to learn the Net Present Value theory and calculations. Whether you're a beginner starting to learn Financial Mathematics or an advanced student studying advanced Quantitative Modelling, you will need to know what Net Present Value is.
The Course Objectives is to teach you all the most important basics for Financial Mathematics: Net Present Value and Time Value of Money.