Mastering the Time Value of Money

Master an understanding of the time value of money to assess critical decisions about investments. Project cash flows, calculate payments, and solve lease-or-buy dilemmas.

Description

In today's competitive business world, managers are charged with making many project-related decisions, often involving costs or revenues that will be encountered some time in the future. Managers need to have a fundamental understanding of the time value of money.

In this course, participants develop a solid understanding of the time value of money. Using timelines and cash-flow calculations they will learn to project cash flow, calculate payments, establish the value of securities and investments, and determine when it is more cost effective to lease or to buy.

Who Should Take This Course?

This course is crucial for managers without a significant financial background who are charged with project planning, purchasing decisions, and planning capital budgeting projects.

Course Format

eCornell takes a problem-based approach to learning, and our courses are built around realistic case studies and scenarios. All courses are self-paced, and are facilitated by an eCornell instructor, who leads the online discussions and is available to answer any questions about the course content.

This course contains the following modules:

• Intuition and Conceptual Framework
  • Explaining the importance of the timing of future cash flows
  • Using a cash-flow timeline to conceptualize TVM problems
• Basic TVM Tools
  • Using a financial calculator to solve TVM problems
  • Calculating the future and present value of a lump-sum payment
• Advanced TVM Tools
  • Calculating the value of perpetuities and growing perpetuities
  • Calculating the future and present value of annuities

Benefits to the Learner

After completing this course, participants will be able to:

• Make planning decisions in the present, based on the accurate calculation of cash flow projections
• Use a cash-flow timeline to conceptualize time-value-of-money problems
• Use a financial calculator to solve time-value-of-money problems
• Calculate present and future values of payments, perpetuities, and annuities
• Use these concepts as a foundation for making capital investment decisions

Authoring Faculty

Steven Carvell, Ph.D., Associate Professor and Associate Dean for Academic Affairs

Scott Gibson, Ph.D., Assistant Professor

Sponsoring School

Cornell University's School of Hotel Administration

Total Learning Time

Approximately five to six hours over a period of two weeks.

Certificate Information

This course can be applied toward the following certificates:

• Business Leadership Skills
• Financial Management

Other Requirements

Participants in this course need one of the following financial calculators:

• Hewlett-Packard 12C
• Texas Instruments BA II Plus

Both are available for purchase directly from Amazon.com.

HRCI Recertification

This course been approved for six (6) Strategic Management recertification credit hours toward SPHR and GPHR recertification and six (6) recertification credit hours toward PHR, SPHR, and GPHR recertification through the Human Resource Certification Institute. Please contact the Human Resource Certificate Institute (HRCI) for further information about certification or recertification.

This course qualifies for 6.75 Professional Development Units (PDUs) from the Project Management Institute (PMI) for Professional Project Managers (PMPs) seeking ongoing education and professional development for continuing certification. eCornell is a Global Registered Education Provider of PMI. PDUs are designated as Category 3.

Project Management Institute Professional Development Units