Welcome back to corporate finance.
Last time we talked about compounding or
the process of moving cash flows forward in time.
Today I want to present several useful shortcuts to compute the present value and
future value of common streams of cash flows that we see often in practice.
Let's get started.
Hey everybody, welcome to our third lecture on the time value of money.
So, last time we talked about compounding or
the process of moving cash flows forward in time.
[COUGH] Excuse me.
To find their future value, whereas in our first lecture we
moved cash flows back in time by discounting to find their present value.
So, what I want to do today is I want to give you some useful shortcuts for
computing the present value or
the future value of some streams of cash flows that commonly arise in practice.