Note Week 2 Assignment: Due By 11:59 Tonight

Note Week2 Assignment This Is Due By 1159 Tonightteachin

Develop a 10- to 12-slide PowerPoint Presentation (excluding title slide and references) explaining Net Present Value (NPV) and Future Value (FV), how they are used to evaluate stock prices, the factors in the formulas, examples of their use, and their differences.

Include slide notes with explanations for each topic and cite at least two scholarly sources in APA 6th edition style.

Paper For Above instruction

The assignment involves creating a comprehensive training program that elucidates the concepts of Net Present Value (NPV) and Future Value (FV), their application in stock valuation, and the differences between these financial metrics. The goal is to enhance employee understanding of these key finance principles and their relevance to investment decision-making.

Understanding NPV and FV is critical for evaluating investment opportunities, particularly in stocks. NPV measures the difference between the present value of cash inflows and outflows over a period, discounted at a specified rate, reflecting the profitability of an investment. FV, on the other hand, calculates the amount an initial sum will grow to over a period at a particular interest rate, representing the future worth of current investments. Both metrics rely on factors such as interest rates, time periods, and cash flow amounts, but serve different purposes: NPV for assessing profitability, FV for projecting growth.

The presentation will include definitions of NPV and FV, detailed descriptions of the formulas, and how each factor influences the calculations. For example, illustrating how an investor might determine the value of a stock purchase using these formulas will concretize their practical application. Additionally, comparing and contrasting NPV and FV will clarify their unique purposes and when each should be used. For instance, FV is often used for savings and investment growth projections, whereas NPV guides investment decisions by evaluating potential profitability.

Creating this presentation requires an understanding of core financial concepts, clarity in communication, and proper APA citations to support the material. Scholarly sources such as academic journals, textbooks, or financial analysis publications will underpin the explanations to ensure accuracy and credibility.

References

  • Ross, S. A., Westerfield, R. W., & Jaffe, J. (2013). Corporate Finance (10th ed.). McGraw-Hill Education.
  • Brealey, R. A., Myers, S. C., & Marcus, A. J. (2017). Fundamentals of Corporate Finance (12th ed.). McGraw-Hill Education.
  • Damodaran, A. (2010). Applied Corporate Finance. Wiley.
  • Investopedia. (2020). Net Present Value (NPV). https://www.investopedia.com/terms/n/npv.asp
  • Investopedia. (2020). Future Value (FV). https://www.investopedia.com/terms/f/futurevalue.asp

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