Term
|
Definition
|
|
Term
|
Definition
| The current value of future cash flows discounted at the appropriate discount rate |
|
|
Term
|
Definition
| value at t=0 on a time line |
|
|
Term
|
Definition
|
|
Term
|
Definition
| The amount an investment is worth after one or more period |
|
|
Term
|
Definition
| "Late" money on a time line |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Discount rate; Cost of capital; Opportunity cost of capital; Required return; Terminology depends on usage |
|
|
Term
|
Definition
| Interest earned only on the original principal |
|
|
Term
|
Definition
| Interest earned on principal and on interest received |
|
|
Term
|
Definition
| "Interest on Interest"--interest earned on reinvestment of previous interest payment |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| FV-For a given interest rate |
|
Definition
| The longer the time period; the higher the future value |
|
|
Term
|
Definition
| as t increases, FV increase |
|
|
Term
|
Definition
| The higher the interest rate; the larger the fv |
|
|
Term
| FV-For a given t, as r increase |
|
Definition
|
|
Term
|
Definition
| The current value of future cash flows discounted at the appropriate discount rate |
|
|
Term
|
Definition
| Value at t=0 on a time line |
|
|
Term
|
Definition
| The current value of an amount to be received int the future |
|
|
Term
| Why is it worth less than face value |
|
Definition
| Opportunity cost; Risk & Uncertainty |
|
|
Term
|
Definition
|
|
Term
|
Definition
| finding the pv of one or more future amount |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| PV-for given interest rate |
|
Definition
| the longer the time period; the lower the pv |
|
|
Term
| PV- for a given r, as t increase |
|
Definition
|
|
Term
| PV-for a given time period |
|
Definition
| The higher the interest rate, the smaller the present value |
|
|
Term
| PV-for a given t, as r increase |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
