Section outline

  • Welcome to "Time Value of Money"! This module takes us on a time travel with money and thereby covers one of the basic pillars of finance.


    The main learning goals of this module are:
      • Know how to make cash flows comparable over time.
      • Get familiar with the basics of Compounding and Discounting (time traveling with money).
      • Understand Present Values and Future Values.
      • Be able to compute the present and future value of any cash flow or cash flow stream.
      • Know how to handle perpetuities and annuities.
    • The following document gives a brief introduction to the topic and provides an overview of the logic of this module: