Time value of money

CRITERIA

NON-PERFORMANCE

BASIC

PROFICIENT

DISTINGUISHED

Explain the concept of cash flow in corporate finance. 

Does not explain the concept of cash flow in corporate finance. 

Explains the concept of cash flow in corporate finance but omits key elements.

Explains the concept of cash flow in corporate finance. 

Analyzes the concept of cash flow in corporate finance and connects the analysis to relevant real-world situations. 

Explain how present value and future value are related. 

Does not explain how present value and future value are related. 

Constructs an inaccurate or incomplete explanation of how present value and future value are related. 

Explains how present value and future value are related. 

Analyzes how present value and future value are related and connects the analysis to relevant real-world situations. 

Explain how present values are affected by changes in interest rates.

Does not explain how present values are affected by changes in interest rates.

Constructs an inaccurate or incomplete explanation of how present values are affected by changes in interest rates.

Explains how present values are affected by changes in interest rates.

Analyzes how present values are affected by changes in interest rates and connects the analysis to relevant real-world situations. 

Calculate the future value of an initial deposit.

Does not calculate the future value of an initial deposit.

Calculates the future value of an initial deposit using inaccurate or incomplete data.

Calculates the future value of an initial deposit.

Calculates the future value of an initial deposit and explains the calculation. 

Calculate the future value of a savings account.

Does not calculate the future value of a savings account.

Calculates the future value of a savings account using inaccurate or incomplete data.

Calculates the future value of a savings account.

Calculates the future value of a savings account and explains the calculation. 

Calculate the annual rate of return on an investment that has increased in value over time. 

Does not calculate the annual rate of return on an investment that has increased in value over time. 

Calculates the annual rate of return on an investment that has increased in value over time using inaccurate or incomplete data. 

Calculates the annual rate of return on an investment that has increased in value over time. 

Calculates the annual rate of return on an investment that has increased in value over time and explains the calculation.