About This Chapter
Understanding Valuation Methods - Chapter Summary
This finance chapter is designed to help you better understand and practice applying valuation methods. Inside the chapter, you'll find simple lessons that show you the formulas for calculating present and future value. After finishing the lessons, you can practice these methods by taking the included self-assessment quizzes and chapter exam. If you get stuck or need any extra help, simply submit your questions to one of our expert finance instructors. Finally, we've made the chapter available to access 24/7, which allows you to set your own study schedule. By the end of the chapter, you should be able to:
- Define the formulas for present and future value
- Calculate the time value of money
- Determine the present value of an investment
1. How to Calculate Future Value: Formula & Example
This lesson will give an overview of and explain the future value formula. Also in this lesson, various examples will be explored using the future value formula.
2. Present and Future Value: Calculating the Time Value of Money
A central concept in business and finance is the time value of money. We will use easy to follow examples and calculate the present and future value of both sums of money and annuities.
3. How to Calculate Present Value of an Investment: Formula & Examples
This lesson will provide an overview of how to calculate the present value of an investment. Various examples will also be explored using the present value formula. You can test your knowledge of the material with a quiz at the end of the lesson.
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Other chapters within the UExcel Principles of Finance: Study Guide & Test Prep course
- Overview of Corporate Finance
- Statements, Taxes & Cash Flows in Finance
- Overview of Financial Statements
- Long-Term Financial Planning & Growth Basics
- Discounted Cash Flow Valuation Basics
- Interest Rates & Bonds
- Stock Valuation Overview
- Basics of Net Present Value & Investments
- Capital Investments
- Risk & Return in Accounting
- Risk & the Security Market Line
- Options in Corporate Finance
- Cost of Capital Basics
- Financial Leverage & Capital Structure Overview
- Dividend Policy Basics
- Short-Term Financial Planning
- Cash Management
- Credit & Inventory Management Overview
- International Corporate Finance Basics
- UExcel Principles of Finance Flashcards