Archive | Time Value of Money

Adjusting Time Value of Money (Techniques)

This article throws light upon the top two techniques used for adjusting time value of money. The techniques are: 1. Compounding Technique 2. Present Value Techniques. Adjusting Time Value of Money: Technique # 1. Compounding Technique: The time preference for money encourages a person to receive the money at present instead of waiting for future. […]

Top 5 Applications of Time Value Techniques

This article throws light upon the top five applications of time value techniques. The applications are: 1. Sinking Fund Problems 2. Capital Recovery Problems 3. Compound Growth Rate Problems 4. Interest Rate Problems 5. Valuation Problems. Time Value Techniques: Application # 1. Sinking Fund Problems: A financial manager may have to determine the amount of […]