HAME 507 - Mastering the Time Value of Money

Institution:

Cornell University

Subject:

Description:

In today's competitive business world, managers are charged with making many project-related decisions, often involving costs or revenues that will be encountered some time in the future. Managers need to have a fundamental understanding of the time value of money. In this course, learners develop a solid understanding of the time value of money. Using timelines and cash-flow calculations they will learn to project cash flow, calculate payments, establish the value of securities and investments, and determine when it is more cost effective to lease or to buy. Who Should Take This Course This course is crucial for managers without a significant financial background who are charged with project planning, purchasing decisions, and planning capital budgeting projects. Course Format This course contains the following modules: Intuition and Conceptual Framework Explaining the importance of the timing of future cash flows Using a cash-flow timeline to conceptualize TVM problems Basic TVM Tools Using a financial calculator to solve TVM problems Calculating the future and present value of a lump-sum payment Advanced TVM Tools Calculating the value of perpetuities and growing perpetuities Calculating the future and present value of annuities Benefits to Learner Learners who complete this course will be able to: Make planning decisions in the present, based on the accurate calculation of cash flow projections Use a cash-flow timeline to conceptualize time-value-of-money problems Use a financial calculator to solve time-value-of-money problems Calculate present and future values of payments, perpetuities, and annuities Use these concepts as a foundation for making capital investment decisions Certificate Information This course can be applied to the following certificates: Business Leadership Skills Financial Management Other Requirements Learners in this course need one of the following financial calculators: Hewlett-Packard 12C Texas Instruments BA II Plus Sponsoring School Cornell University's School of Hotel Administration

Credits:

3.00

Credit Hours:

Prerequisites:

Corequisites:

Exclusions:

Level:

Instructional Type:

Lecture

Notes:

Additional Information:

Historical Version(s):

Institution Website:

www.cornell.edu

Phone Number:

(607) 255-2000

Regional Accreditation:

Middle States Association of Colleges and Schools

Calendar System:

Semester

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