Time Value of Money (Slides in Spanish)

24 Pages Posted: 25 Mar 2006 Last revised: 12 Jun 2012

See all articles by Ignacio Velez-Pareja

Ignacio Velez-Pareja

Grupo Consultor CAV Capital Advisory & Valuation

Date Written: April 4, 2008


This is a course material (slides in pdf format) from the book Investment Decision Making. For Firm and Project Valuation. The book is originally in Spanish and is untitled as Decisiones de inversión. Para la valoración financiera de proyectos y empresas.

In this second chapter we deal with the Basic concept in Finance: the time value of Money. A dollar today is worth more than a dollar tomorrow. This concept allows us to find equivalent amounts of Money in different periods of time. This will enable us to compare different cash flow profiles. In the last part of the chapter we study the different structures of a debt schedule. We use intensively the spreadsheet.

Note: Downloadable document is in Spanish.

Keywords: Time value of money, interest, discount process, annuities, real interest rate, discount rate, debt schedule

JEL Classification: G31

Suggested Citation

Velez-Pareja, Ignacio, Time Value of Money (Slides in Spanish) (April 4, 2008). Available at SSRN: https://ssrn.com/abstract=891960 or http://dx.doi.org/10.2139/ssrn.891960

Ignacio Velez-Pareja (Contact Author)

Grupo Consultor CAV Capital Advisory & Valuation ( email )

Ave Miramar # 18-93 Apt 6A
+573112333074 (Phone)

HOME PAGE: http://cashflow88.com/decisiones/decisiones.html

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