Description
Assignment 1: Discussion Question
Financial mangers make decisions today that will affect the firm in the future. The dollars used for investment expenditures made today are different from the cash flows to be realized in the future. What are these differences? What are some of the techniques that can be used to adjust for these differences?
By the due date assigned, respond to the discussion question. Submit your response to the Discussion Area. Start reviewing and responding to your classmates as early in the module as possible.
Explanation & Answer
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Financial Management
Thesis statement: Financial managers indeed do not only make decisions that will affect the
company at present, but also in the future.
1. The differences that exist between current investment and future cash flows
a. Present value and future value
2. Techniques used to adjust for these differences
a. Compounding technique
b. Present value technique
Running head: FINANCIAL MANAGEMENT
Financial Management
Institution Affiliation
Date
1
FINANCIAL MANAGEMENT
2
The differences that exist between current i...