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Ch 6: Discounted Cash Flow Valuation

About This Chapter

Use these brief video lessons to learn about the valuation of future cash flows and several common financial instruments that effect these calculations. The instructors are available to answer any additional questions you may have.

Discounted Cash Flow Valuation - Chapter Summary and Learning Objectives

This chapter helps you learn to use cash flows and valuations to determine the value of investments. In order to determine the value of a company, it can be necessary to predict the future of cash flows in and out of the business and how various financial instruments and structures can influence these numbers. These comprehensive lessons will help you lean about:

  • The value of cash flows
  • Annuities and perpetuities
  • Interest rate calculation
  • Types of common loans

Video Objective
Present & Future Values of Multiple Cash Flows Explain cash flow valuation
What is Annuity? - Definition, Formula & Quiz Explore annuities
How to Find the Value of an Annuity Determine the present value for annuity cash flow
What is a Perpetuity? - Definition & Formula Understand the perpetuity formula
Compounding Interest Formulas: Calculations & Examples Examine and compare types of interest
Loan Types: Pure Discount, Interest-Only & Amortization Explain the differences between loans

6 Lessons in Chapter 6: Discounted Cash Flow Valuation
Test your knowledge with a 30-question chapter practice test
Present & Future Values of Multiple Cash Flows

1. Present & Future Values of Multiple Cash Flows

$100 today is not worth the same as $100 was 50 years ago, nor is it worth the same as $100 will be in 50 more years. In this lesson, we'll discuss the time value of money and how it influences the present and future values of cash.

What is Annuity? - Definition & Formula

2. What is Annuity? - Definition & Formula

In this lesson, you'll learn about payments that occur at regular time intervals, or in financial terms, annuities. Afterwards, test your understanding of the lesson with a quiz.

How to Find the Value of an Annuity

3. How to Find the Value of an Annuity

Want to see how much money you will have in the future if you make a set payment every month towards your annuity? Then watch this video lesson for the formula and how to use it.

What is a Perpetuity? - Definition & Formula

4. What is a Perpetuity? - Definition & Formula

This lesson defines and explains what a perpetuity is. It also provides examples of perpetuities and introduces a formula to calculate the present value of a perpetuity.

Compounding Interest Formulas: Calculations & Examples

5. Compounding Interest Formulas: Calculations & Examples

Compound interest is a great way to have your money work for you. In this lesson, find out the formula for calculating compound interest and practice using the formula with several examples.

Loan Types: Pure Discount, Interest-Only & Amortization

6. Loan Types: Pure Discount, Interest-Only & Amortization

This lesson explores three types of loans: pure discount, interest-only, and amortizing loans. We'll examine how these loans are repaid and how the lender makes a profit.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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