PART 1
Imagine that you are the newly hired CFO for a start-up company that is just beginning to grow. In your role, you must help educate the original leadership staff on the importance of good financial practices because they are from a different industry (software).
As a part of your role, you are evaluating the future cash flows of the company. During this analysis, it became apparent that the other members of the leadership group did not understand why future revenues would be discounted. Prepare a short PowerPoint presentation that explains the concept of the time value of money.
Requirements
- Between 5-7 slides
- Professional appearance including theme and at least two images/graphics
- Non-technical explanation of the time value of money in a corporate finance perspective
- Include at least two referenceS
PART 2
These problems are designed with a real-world context. You will often have co-workers that are not as knowledgeable as you in financial maters. They will come to you several of bits of information and ask you to make sense out of all the various financial numbers. When answering these problems there are multiple-steps you will go through to come to your conclusion.
Unit 4, is focusing critical concept of the Time Value of Money. The focus of these problems is on the practical application of:
- Future Value, Single amount
- Present Value-Single amount
- Valuation involving Multiple Cash flows
- Annuity
- Stock valuation
Steps
- Download the AC220 Unit 4 Problems Download AC220 Unit 4 Problems[Excel]
- For each problem you need to decide which information is relevant.
- Formulate your answer. Present the information in a format that allows a co-worker to understand completely how you came to that answer. Some of the problems may be a single-step solution, others may have multiple steps.
- Finally, you will present the overall complete answer. Feel free to use the power of excel to do your calculations.
Submit
- Submit your completed spreadsheet.
