Deliverable Length: 400
Apply the time value of money in making
Use effective communication, team and
problem-solving skills to collaborate on a project.
Primary Task Response: Write 400 words that respond to the following questions
with your thoughts, ideas, and comments.
The time value of money concept is one of the 3 major principles
of the study and practice of financial management. It is used to evaluate
potential investments, determine a rate of return on a project, calculate the
required payments on a loan or annuity, and estimate a future value of funds
currently invested and the present value of funds to be received at some future
date. It is imperative that managers at all levels of business have a
working knowledge of this topic. In your first task, you have been asked
to engage your colleagues in a detailed and documented discussion about the
time value of money concept: what it is, why it is important, how it is used,
and generally, how the applications to single and periodic payments are
computed using various calculation methods and formulas.
In your initial post, identify and recommend at least 1 credible
Web site that an investor can visit to find the current market value of market
indexes such as the Dow Industrial Averages, and address at least 3 of the
- What is the discounted
cash flow concept, and why is it essential for financial managers to
understand and employ this important concept?
- What are the methods
associated with evaluating single or periodic payments, and what is at
least 1 application of each?
- Discuss the different
methods that can be used to calculate these amounts, and explain how at
least 1 of these models can be used.
- How can the time value of
money models or formulas be used to determine the rate of return for an
investment or the time it will take for a current sum to grow to a desired
- Discuss the "Rule of
72" and how it can be used to estimate how long it takes for money to
double at various rates of return.
- Identify and recommend at
least 1 credible Web site that an investor can visit to find the current
market value of market indexes such as the Dow Industrial Averages.
Be sure to document your posts with in-text citations, credible
sources, and properly listed references.