Discussion Assignment 2.1

Time Value of Money

Activity Context

This discussion helps you develop the skills to master the following course competencies:

· Evaluate alternative methods of financing a firm in diverse economic environments.

Activity Instruction

Define and discuss the importance of the time value of money concepts, including compounding (future value), discounting (present value), and annuities. Why would you as an organization leader need to understand these concepts? Support your discussion post using the materials in the study for this unit.

Support your post as appropriate with the theories presented in this week's required reading.(see attachment)

Resources

· Discussion Participation Scoring Guide.

Studies

Readings(see attachment)

Use your Corporate Finance: Core Principles and Applications textbook to read the following: (see attachment))

· Chapter 4, "Discounted Cash Flow Valuation." 

· Chapter 5, "Interest Rates and Bond Valuation." 

· Chapter 6, "Stock Valuation." 

Ross, S. A., Westerfield, R. W., Jaffe, J. F., & Jordan, B. D. (2018). Corporate finance: Core principles and applications (5th ed.). New York, NY: McGraw-Hill

The following required reading is available full-text in the Capella University Library. Search for the article by clicking the linked title and following the instructions in the Library Guide.

· Desai, M. A. (2008). The finance function of a global corporation. Harvard Business Review, 86(7/8), 108–112. (see attachment)

Multimedia (see attachment)

· Time Value of Money, Part 1: The Big Picture.

· Time Value of Money, Part 2: A Case Study at Bank One

Page 1 of 2

Page 2 of 2