The Time-Value of Money

The Time-Value of Money is a concise tutorial on valuing cash flows over time. It provides a clear description of how to recast the monetary value of one or more future cash flows into an equivalent present value. Converting future cash flow streams into to a present value allows future cash flows to be treated within the same time-frame and thereby provides the means necessary to evaluate an asset fairly. The book covers concepts such as weighted cost of capital, present and future value, interest rates, mortgages, annuities, growth models, discounting, internal rate of return and net present value assessments.