Principle to Financing
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Teaching Net Present Value (NPV) & Future Value (FV)
Pathbuilder is being used in this course and this assignment is currently locked. Prior to beginning work on this assignment you must complete the Time Value of Money, Compound and Simple Interest, Single Cash Flow, Present Value of a Cash Flow Effective Annual Percentage Rate, Multiple Cash Flows, Future Value of a Single Cash Flow, Common Cash Perpetuities, Common Cash – Ordinary Annuities and Annuities Due, Common Cash– Amortized Loans, and Stocks modules in the RealizeIt platform. Once the modules are completed and this information has been transferred into the course gradebook this assignment will unlock and you will be able to submit your assignment through Waypoint.
(Please note that some modules will have prerequisites that must be completed first. You are highly encouraged to start your RealizeIt work early in order to ensure that you have plenty of time to successfully complete all required modules prior to the due dates for your assigned work. If you do not complete any work in the RealizeIt platform, the grade returned from RealizeIt will be a Zero.)
You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock. You have been given the following objectives:
Upon completing your Net Present Value (NPV) and Future Value (FV) Training Program, employees should be able to do the following:
Explain NPV and FV.
Describe the factors that are used in the NPV and the FV formulas.
Give an example of how to use the formulas for NPV and FV for a stock purchase.
Summarize the differences between the two formulas and the purpose of using each.
