NPV calculation - Illinois Institute of Technology
NPV calculation
Academic Resource Center
1
NPV calculation
? PV calculation a. Constant Annuity b. Growth Annuity c. Constant Perpetuity d. Growth Perpetuity ? NPV calculation a. Cash flow happens at year 0 b. Cash flow happens at year n
2
NPV Calculation ? basic concept
Annuity: An annuity is a series of equal payments or receipts that occur at evenly spaced intervals.
Eg. loan, rental payment, regular deposit to saving account, monthly home mortgage payment, monthly insurance payment
(finance_theory) 3
Constant Annuity Timeline
4
NPV Calculation ? basic concept
? Perpetuity:
A constant stream of identical cash flows with no end. The concept of a perpetuity is used often in financial theory, such as the dividend discount model (DDM), by Gordon Growth, used for stock valuation.
5
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- using bloomberg to get the data you need
- npv calculation illinois institute of technology
- chapter 12 equity valuation baruch college
- what matters in company valuation earnings residual
- the cost of new common stock and the wacc
- chapter 1 return calculations university of washington
- i the stable growth ddm gordon growth model
- practice problems for exam ii econ 353 spring 2005
- chapter 7 stocks and stock valuation
- example 1 answer
Related searches
- seton institute of reconstructive surgery
- michigan institute of real estate classes
- sports institute of tucson
- institute of physics iop
- institute of physics uk
- american institute of physics
- american institute of physics citation
- american institute of physics inc
- chicago institute of plastic surgery
- indian institute of public health
- nigerian institute of international affairs
- eric institute of education science