Question

Time value of money is one of the most important and yet difficult topics in finance. After reviewing our examples and problems, what aspect of time value did you find most interesting and/or useful?

Answer 1

The aspect of time value that i find most interstng is the present value of a series of cash flows. This is the most interesting topics to learn as there is a large variety of problems and their complexity in cash flows which would help us apply th concept almost everywhere. This is also the most usefull tool in the topic of time value of money. With this tool we can value different asset classes like equities, fixed incomeand others. We can also value various contractual agreements like leases. It can also be used in evaluating project through capital budgeting process by Net present value.