Chapter 7. Time Value of Money and Evaluating Investments
Published Online: 25 AUG 2009
DOI: 10.1002/9780470548813.ch7
Copyright © 2009 by John Wiley & Sons, Inc. All rights reserved.
Book Title
Financial Management and Accounting Fundamentals for Construction
Additional Information
How to Cite
Halpin, D. W. and Senior, B. A. (2009) Time Value of Money and Evaluating Investments, in Financial Management and Accounting Fundamentals for Construction, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9780470548813.ch7
Publication History
- Published Online: 25 AUG 2009
- Published Print: 2 SEP 2009
ISBN Information
Print ISBN: 9780470182710
Online ISBN: 9780470548813
- Summary
- Chapter
Keywords:
- money;
- interest;
- MARR;
- annuity;
- investments
Summary
This chapter contains sections titled:
Introduction
Time Value of Money
Interest
Simple and Compound Interest
Nominal and Effective Rate
Equivalence and MARR
Discount Rate
Importance of Equivalence
Inflation
Sunk Costs
Cash Flow Diagrams
Annuities
Conditions for Annuity Calculations
Calculating the Future Value of a Series of Payments
Summary of Equivalence Formulas
Worth Analysis Techniques: An Overview
Present Worth Analysis
Investments with Different Life Spans
Equivalent Annual Worth (EAW)
Internal Rate of Return
Limitations of the IRR Method
An Example Involving Cost Recovery
Comparison Using EAW
An IRR Example—Owner Financing Using Bonds
Review Questions and Exercises