[管理学]公司理财精要chap005.ppt

Discounted Cash Flow Valuation Chapter 5 Key Concepts and Skills Be able to compute the future value of multiple cash flows Be able to compute the present value of multiple cash flows Be able to compute loan payments Be able to find the interest rate on a loan Understand how loans are amortized or paid off Understand how interest rates are quoted Chapter Outline Future and Present Values of Multiple Cash Flows Valuing Level Cash Flows: Annuities and Perpetuities Comparing Rates: The Effect of Compounding Periods Loan Types and Loan Amortization Multiple Cash Flows – FV Example 5.1 Find the value at year 3 of each cash flow and add them together. Today (year 0): FV = 7000(1.08)3 = 8,817.98 Year 1: FV = 4,000(1.08)2 = 4,665.60 Year 2: FV = 4,000(1.08) = 4,320 Year 3: value = 4,000 Total value in 3 years = 8817.98 + 4665.60 + 4320 + 4000 = 21,803.58 Value at year 4 = 21,803.58(1.08) = 23,547.87 Multiple Cash Flows – FV Example 2 Suppose you invest $500 in a mutual fund today and $600 in one year. If the fund pays 9% annually, how much will you have in two years? FV = 500(1.09)2 + 600(1.09) = 1248.05 Example 2 Continued How much will you have in 5 years if you make no further deposits? First way: FV = 500(1.09)5 + 600(1.09)4 = 1616.26 Second way – use value at year 2: FV = 1248.05(1.09)3 = 1616.26 Multiple Cash Flows – FV Example 3 Suppose you plan to deposit $100 into an account in one year and $300 into the account in three years. How much will be in the account in five years if the interest rate is 8%? FV = 100(1.08)4 + 300(1.08)2 = 136.05 + 349.92 = 485.97 Example 3 Timeline Multiple Cash Flows – Present Value Example 5.3 Find the PV of each cash flow and add them Year 1 CF: 200 / (1.12)1 = 178.57 Year 2 CF: 400 / (1.12)2 = 318.88 Year 3 CF: 600 / (1.12)3 = 427.07 Year 4 CF: 800 / (1.12)4 = 508.41 Total PV = 178.57 + 318.88 + 427.07 + 508.41 = 1432.93 Example 5.3 Timeline Multiple Cash Flows – PV Another Example You are considering an investment that will pay you