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Principles of Finance

Summary

Principles of FinanceSummary

9.1 Timing of Cash Flows

To understand the true value and strength of cash, it is necessary to consider its timing. This is relevant for investments for the future and for analyses of the value of projects that require investment today to produce expected flows of cash later. These future cash flows could involve inflows or outflows of cash in unequal amounts. This section analyzed the determination of present and future value of these uneven or mixed cash flows.

9.2 Unequal Payments Using a Financial Calculator or Microsoft Excel

This section discussed the use of two tools for managing and understanding the time value of money and its many applications when the flows of cash are unequal: the TI BA II Plus™ Professional financial calculator and the spreadsheet application Excel.

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