Financial Management. Lecture 2. Time value of money (Part 1)

This lecture starts the discussion of time value of money and the mathematical framework used to compare money located in different moments of time. The important concept of present value is introduced and illustrated with several examples 00:00 Introduction 04:10 Assets prices and future cash flows 09:20 Time value of money 14:38 One period case 21:20 Multi-period case 28:00 How interest rate affects FV and PV 31:53 Multiple cash flows 34:30 Future value of cash flow 44:32 Present value of cash flow 52:15 Conclusion The course “Financial management“ for the 4th year bachelors in Management Taught at BRICS institute, Irkutsk National Research Technical University, Winter semester 2022