FBA FE STUDENTS Chap1 Time Value APENDIX - Fahmi Ben

Nov 9, 2012 - Applying The Rules of Time Travel. The Timeline. Compounding Laws and Effective Annual Rate. Valuing a stream of cash flows. Perpetuities ...
78KB taille 6 téléchargements 287 vues
Applying The Rules of Time Travel

The Timeline Compounding Laws and Effective Annual Rate Valuing a stream of cash flows Perpetuities, Annuities, and Other Special Cases

Only one formula to memorize ! Growing Annuity formula encompasses all of the other formulas in this section:

Type of cash-flows

Constant cash-flows

Growing cash-flows

g = 0;n → ∞

g