What would be the present value of perpetuity cash flows receiving monthly at an annual discount rate ? Do we have to multiply the monthly cash flow by 12?
Hi! We do not provide technical support. However, please do check out our courses here to learn more: rebrand.ly/b6ae09 Let us know if you have any questions! - Maria
Hey, in slide 7 of this module, it says that $100 today is equivalent to $133.10 in three years. In the previous slide it said there are other factors which demonstrate the different values of money over time, with them being risk and inflation. Is this risk and inflation factored into the $133.10 in three years? If inflation were 1.5%, wouldn't that $133.10 still be less than $100 today, also taking into consideration of risk?
Yes, risk and inflation are factored into the $133.10 in three years. When calculating the PV, the 10% discount rate used in the formula is the required rate of return the investor is expecting to receive for the investment. This discount rate takes into account the risk associated with the investment as well as the expected inflation, etc.
@@CFI_Official , Basically, compound rate of interest has been applied causing $100 today to turn into $133.10.Had it been simple interest rate, the value of the current $100 will be $130 in 3 years' time.
Thank you so much for excellent video to summarise basic finance concepts 👍🏼
What would be the present value of perpetuity cash flows receiving monthly at an annual discount rate ? Do we have to multiply the monthly cash flow by 12?
Hi! We do not provide technical support. However, please do check out our courses here to learn more: rebrand.ly/b6ae09
Let us know if you have any questions! - Maria
Hey, in slide 7 of this module, it says that $100 today is equivalent to $133.10 in three years. In the previous slide it said there are other factors which demonstrate the different values of money over time, with them being risk and inflation. Is this risk and inflation factored into the $133.10 in three years? If inflation were 1.5%, wouldn't that $133.10 still be less than $100 today, also taking into consideration of risk?
Yes, risk and inflation are factored into the $133.10 in three years. When calculating the PV, the 10% discount rate used in the formula is the required rate of return the investor is expecting to receive for the investment. This discount rate takes into account the risk associated with the investment as well as the expected inflation, etc.
@@CFI_Official , Basically, compound rate of interest has been applied causing $100 today to turn into $133.10.Had it been simple interest rate, the value of the current $100 will be $130 in 3 years' time.
Very instructive!
thanks
Can you please share the link for the module 2
going too fast... hard to follow
May God bless you. Really this tutorial helped to understand and differentiate those three concepts.
Wow, this was a good foundation for us undertaking finance.
is it blurry for me or did u all find the video to be blurry?
Please Sir share the link and the lecture notes
with some sense....let some one who could pronounce englishi properly..may be an english native can present this.
Oh Really! get your brain fixed. I find no problem in this
His accent and clarity is GREAT! You clearly aren’t a native english speaker or you wouldn’t be passing this comment.