Time Value of Money - Foundations to Application

What you'll learn

---

Master the foundational concepts of time value of money
Confidently calculate present and future value for even and uneven series of cash flows
Understand why time value of money plays such an important role in corporate finance
Complete a detailed discounted cash flow analysis to analyze a business acquisition
Requirements

---

No prior finance knowledge required, we'll start at the very beginning and work up from there.
Description

---

Time Value of Money - Foundations to Application is your complete guide to one of the most fundamental concepts in finance and accounting. This series builds from the ground up - starting with why a dollar today is worth more than a dollar in the future, working through the mechanics of interest (including simple interest, compound interest, nominal interest rate and effective interest rates), present and future value, annuities (ordinary annuities and annuities due), inconsistent cash flows, and finishing with a full discounted cash flow analysis of a real business acquisition.Throughout, the focus is on building genuine intuition first, so the formulas become tools you understand rather than equations you memorize. You'll estimate a weighted average cost of capital built from the cost of debt and cost of equity, build a free cash flow forecast, calculate a terminal value, and arrive at an enterprise value - all in Excel.Every input and assumption is explained along the way, and the complete model is available to download. Bonus episodes cover sensitivity analysis and return metrics including NPV and IRR. Whether you're coming from accounting, stepping into corporate finance, want to understand how time value of money impacts personal finance, or somewhere in between, this series gives you both the conceptual foundation and the applied skills to work with these ideas confidently.
Who this course is for

---

New financial analysis, business owners, or those interested in how the time value of money affects their personal finances
Homepage

---