
Learn how to maximize profits by evaluating investments for desirability, feasibility, and viability, focusing on risk and time to choose the best opportunities.
Weigh investment opportunities by assessing risk and timing of cash flows, using tools to adjust for when payments occur so you can compare certainty of returns.
Learn how risk influences investment decisions by examining GDP, weather, politics, competition, and psychology, and use the opportunity cost of capital to compare opportunities with similar risk.
Explain how time affects investment decisions through compound interest and the rule to compare cash flows at the same point in time, illustrated with year-by-year growth examples.
Explore the time value of money by comparing present and future values, using cash flows, compounding, and 8 percent to decide between projects a and b.
Move cash flows backward in time to calculate present value using cash flow, interest rate, and time; apply to single or multiple future cash flows, including dividends and stock price.
Calculate present value by applying the present value formula to cash flows across different periods, using discount factor and varying compounding. Explore real-world examples and how Excel simplifies these calculations.
Learn to calculate present value of cash flow with Excel's PV function, using rate, nper, and type; compare 1 million today to 3 million in 15 years at 7 percent.
Use Microsoft Excel to calculate rate and sales rate with the present value formula, showing the 17.46 percent result for a $1,000 present value growing to $5,000 in 10 years.
Learn to calculate the number of periods for an investment to reach a target using Excel's nper function, with rate, pv, future value, and type, via $50,000 at 8% example.
Compute the present value of a stream of constant cash flows with the annuity formula. Example: $500 monthly for 20 years at 6 percent yields the present value.
Apply the present value of an annuity and a single cash flow to a bond example, calculating the bond's value from semiannual coupons, face value, and yield to maturity.
Learn to use Excel's NPER to find how long a $100,000, 6% investment can support $20,000 yearly withdrawals to zero, and see it rise to 15.73 years with $10,000 withdrawals.
Compute the present value of an annuity using Excel's PV formula, applying 8% rate, 20 payments of $50,000 at year-end, and verify the aggregate present value matches the annuity calculation.
Use Excel's rate function to calculate the required annual interest rate for a 150,000 present value to support a 30,000 yearly payout for 10 years, ending at zero.
Calculate net present value by subtracting cash outflows and initial investment from the present value of future cash inflows, using the annuity formula and the net present value rule.
Learn how to calculate the present value of a perpetuity using cash flow divided by the discount rate, illustrated with an 8% endowment paying $25,000 annually.
Calculate the present value of a finite stream of constant cash flows, or an annuity, paid at regular intervals using the standard annuity formula and a known interest rate.
Learn to value a growing perpetuity using the r minus g approach, illustrated by a $25,000 endowment growing 3% under an 8% rate, yielding a $500,000 present value.
MBA Math Bootcamp (Finance Edition) helps prepare admitted MBA students for the math rigors of their MBA program and also helps working professionals get all the benefits of an MBA Finance course.
Over 19 lectures, you'll learn: