Financial Modeling & Analysis Exam I | Questions with 100% Correct Answers | Verified
3 Equivalent ways of calculating the present value of a single cash flow - 1. The Present Value Formula 2. Present Value PV Excel Function 3. A Present Value Timeline where each column corresponds to a period What is the effect on the FV of a single cash flow when you increase: a.Present Value b.Discount Rate c. Number of Periods - An increase in the FV Explain the Future of Cash Flow Formula - Each cash flow is compounded at a Discounted Rate for the remaining periods Show the Annuity Future Value formula - AFV=APV*(1+r)^t Show the Annuity Present Value formula - APV=AFV/(1+r)^t Explain why dividing the APV by the PVIFA gives the Payment amount of the Annuity - APV=PMT*PVIFA
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- Subido en
- 18 de junio de 2023
- Número de páginas
- 5
- Escrito en
- 2022/2023
- Tipo
- Examen
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