taiwan财务管理_lecture3(ch3)

©TheMcGraw-HillCompanies,Inc.,20013-1Irwin/McGraw-HillIrwin/McGraw-HillChapter3FundamentalsofCorporateFinanceThirdEditionTheTimeValueofMoneyBrealeyMyersMarcusslidesbyMatthewWillIrwin/McGraw-Hill©TheMcGraw-HillCompanies,Inc.,2001©TheMcGraw-HillCompanies,Inc.,20013-2Irwin/McGraw-HillTopicsCoveredFutureValuesPresentValuesMultipleCashFlowsPerpetuitiesandAnnuitiesInflation&TimeValueEffectiveAnnualInterestRate©TheMcGraw-HillCompanies,Inc.,20013-3Irwin/McGraw-HillFutureValuesFutureValue-Amounttowhichaninvestmentwillgrowafterearninginterest.CompoundInterest-Interestearnedoninterest.SimpleInterest-Interestearnedonlyontheoriginalinvestment.©TheMcGraw-HillCompanies,Inc.,20013-4Irwin/McGraw-HillFutureValuesFutureValueof$100=FVFVrt$100()1©TheMcGraw-HillCompanies,Inc.,20013-5Irwin/McGraw-HillFutureValuesFVrt$100()1Example-FVWhatisthefuturevalueof$100ifinterestiscompoundedannuallyatarateof6%forfiveyears?©TheMcGraw-HillCompanies,Inc.,20013-6Irwin/McGraw-HillFutureValuesFVrt$100()1Example-FVWhatisthefuturevalueof$100ifinterestiscompoundedannuallyatarateof6%forfiveyears?82.133$)06.1(100$5FV©TheMcGraw-HillCompanies,Inc.,20013-7Irwin/McGraw-Hill010203040506070024681012141618202224262830NumberofYearsFVof$10%5%10%15%FutureValueswithCompoundingInterestRates©TheMcGraw-HillCompanies,Inc.,20013-8Irwin/McGraw-HillManhattanIslandSalePeterMinuitboughtManhattanIslandfor$24in1626.Wasthisagooddeal?trillionFV979.75$)08.1(24$374Toanswer,determine$24isworthintheyear2000,compoundedat8%.FYI-ThevalueofManhattanIslandlandiswellbelowthisfigure.©TheMcGraw-HillCompanies,Inc.,20013-9Irwin/McGraw-HillPresentValuesPresentValueValuetodayofafuturecashflow.DiscountRateInterestrateusedtocomputepresentvaluesoffuturecashflows.DiscountFactorPresentvalueofa$1futurepayment.©TheMcGraw-HillCompanies,Inc.,20013-10Irwin/McGraw-HillPresentValuesPresentValue=PVPV=FutureValueaftertperiods(1+r)t©TheMcGraw-HillCompanies,Inc.,20013-11Irwin/McGraw-HillPresentValuesExampleYoujustboughtanewcomputerfor$3,000.Thepaymenttermsare2yearssameascash.Ifyoucanearn8%onyourmoney,howmuchmoneyshouldyousetasidetodayinordertomakethepaymentwhendueintwoyears?572,2$2)08.1(3000PV©TheMcGraw-HillCompanies,Inc.,20013-12Irwin/McGraw-HillPresentValuesDiscountFactor=DF=PVof$1DiscountFactorscanbeusedtocomputethepresentvalueofanycashflow.DFrt11()©TheMcGraw-HillCompanies,Inc.,20013-13Irwin/McGraw-HillThePVformulahasmanyapplications.Givenanyvariablesintheequation,youcansolvefortheremainingvariable.PVFVrt11()TimeValueofMoney(applications)©TheMcGraw-HillCompanies,Inc.,20013-14Irwin/McGraw-HillValueofFreeCreditImpliedInterestRatesInternalRateofReturnTimenecessarytoaccumulatefundsTimeValueofMoney(applications)©TheMcGraw-HillCompanies,Inc.,20013-15Irwin/McGraw-HillPVofMultipleCashFlowsExampleYourautodealergivesyouthechoicetopay$15,500cashnow,ormakethreepayments:$8,000nowand$4,000attheendofthefollowingtwoyears.Ifyourcostofmoneyis8%,whichdoyouprefer?$15,133.06PVTotal36.429,370.703,38,000.0021)08.1(000,42)08.1(000,41paymentImmediatePVPV©TheMcGraw-HillCompanies,Inc.,20013-16Irwin/McGraw-HillPVofMultipleCashFlowsPVscanbeaddedtogethertoevaluatemultiplecashflows.PVCrCr112211()()....©TheMcGraw-HillCompanies,Inc.,20013-17Irwin/McGraw-HillPerpetuities&AnnuitiesPerpetuityAstreamoflevelcashpaymentsthatneverends.AnnuityEquallyspacedlevelstreamofcashflowsforalimitedperiodoftime.©TheMcGraw-HillCompanies,Inc.,20013-18Irwin/McGraw-HillPerpetuities&AnnuitiesPVofPerpetuityFormulaC=cashpaymentr=interestratePVCr©TheMcGraw-HillCompanies,Inc.,20013-19Irwin/McGraw-HillPerpetuities&AnnuitiesExample-PerpetuityInordertocreateanendowment,whichpays$100,000peryear,forever,howmuchmoneymustbesetasidetodayintherateofinterestis10%?PV10000010000000,.$1,,©TheMcGraw-HillCompanies,Inc.,20013-20Irwin/McGraw-HillPerpetuities&AnnuitiesExample-continuedIfthefirstperpetuitypaymentwillnotbereceiveduntilthreeyearsfromtoday,howmuchmoneyneedstobesetasidetoday?PV10000001103315,,(.)$751,©TheMcGraw-HillCompanies,Inc.,20013-21Irwin/McGraw-HillPerpetuities&AnnuitiesPVofAnnuityFormulaC=cashpaymentr=interestratet=NumberofyearscashpaymentisreceivedPVCrrrt111()©TheMcGraw-HillCompanies,Inc.,20013-22Irwin/McGraw-HillPerpetuities&AnnuitiesPVAnnuityFactor(PVAF)-Thepresentvalueof$1ayearforeachoftyears.PVAFrrrt111()©TheMcGraw-HillCompanies,Inc.,20013-23Irwin/McGraw-HillPerpetuities&AnnuitiesExample-AnnuityYouarepurchasingacar.Youarescheduledtomake3annualinstallmentsof$4,000peryear.Givenarateofinterestof10%,whatisthepriceyouarepayingforthecar(i.e.whatisthePV)?PVPV4000947411101101103,$9,...(.)©TheMcGraw-HillCompanies,Inc.,20013-24Irwin/McGraw-HillPerpetuities&AnnuitiesApplicationsValueofpaymentsImpliedinterestrateforanannuityCalculationofperiodicpaymentsMortgagepaymentAnnualincomefromaninvestmentpayoutFutureValueofannualpaymentsFVCPVAFrt()1©TheMcGraw-HillCompanies,Inc.,20013-25Irwin/McGraw-HillPerpetuities&AnnuitiesExample-FutureValueofannualpaymentsYouplantosave$4,000everyyearfor20yearsa