Mastering the Time Value of Money

Description

In today’s delicate global marketplace, it’s imperative that managers make smart decisions about projects and initiatives—carefully weighing costs versus future revenues and considering all outcomes. Managers should learn the “time value of money” concept and apply its principles to their daily work.

In this course, you will use timelines and cash-flow calculations to track cash flow and payments; establish the value of securities and investments; and determine overall cost-effectiveness. The time value of money is a key concept in financial management and project development, and learning it will better prepare you to make smart business decisions.

Who Should Enroll in This Course?

This course is crucial for managers without a significant financial background who are charged with project planning, purchasing decisions, and planning capital budgeting projects.

Requirements

Participants in this course need one of the following financial calculators:

• Hewlett-Packard 12C
• Texas Instruments BA II Plus

Both are available for purchase directly from Amazon.com.

Enrollment

To register, contact an Enrollment Counselor at info@ecornell.com or 1-866-326-7635 (+1-607-330-3200 from outside the United States).

Certificate programs are eligible for eCornell Payment Plans. Discounts are available for military personnel, veterans, and Cornell University Alumni. eCornell programs are not eligible for financial aid or federal Pell Grants. Contact an enrollment counselor for more information.

Certificate Information

This course can be applied toward the following certificates:
 

• Financial Management
• Hospitality Management
• Master Certificate in Hospitality Management
• Strategic Leadership for the Hospitality Professional
• Master Certificate in Hospitality Management
• Master Certificate in Foodservice Management

CEUs

HRCI Recertification

This program, <~CODE~>, has been approved for six (6) Strategic Management recertification credit hours toward SPHR and GPHR recertification and six (6) recertification credit hours toward PHR, SPHR, and GPHR recertification through the Human Resource Certification Institute. Please contact the Human Resource Certificate Institute (HRCI) for further information about certification or recertification.

Project Management Institute Professional Development Units

This course qualifies for 6.75 Professional Development Units (PDUs) from the Project Management Institute (PMI) for Professional Project Managers (PMPs) seeking ongoing education and professional development for continuing certification. eCornell is a Global Registered Education Provider of PMI. PDUs are designated as Category 3.

Additional Information

Course Format

eCornell takes a problem-based approach to learning, and our courses are built around realistic case studies and scenarios. All courses are self-paced, and are facilitated by an eCornell instructor, who leads the online discussions and is available to answer any questions about the course content.

This course contains the following modules:

• Intuition and Conceptual Framework.
  • Explaining the importance of the timing of future cash flows.
  • Using a cash-flow timeline to conceptualize TVM problems.
• Basic TVM Tools.
  • Using a financial calculator to solve TVM problems.
  • Calculating the future and present value of a lump-sum payment.
• Advanced TVM Tools.
  • Calculating the value of perpetuities and growing perpetuities.
  • Calculating the future and present value of annuities.

Benefits to the Learner

After completing this course, participants will be able to:

• Make planning decisions in the present, based on the accurate calculation of cash flow projections.
• Use a cash-flow timeline to conceptualize time-value-of-money problems.
• Use a financial calculator to solve time-value-of-money problems.
• Calculate present and future values of payments, perpetuities, and annuities.
• Use these concepts as a foundation for making capital investment decisions.

Authoring Faculty

Steven Carvell, Ph.D., Associate Professor and Associate Dean for Academic Affairs

Scott Gibson, Ph.D., Assistant Professor

Sponsoring School

Cornell University's School of Hotel Administration

Total Learning Time

Approximately 5-6 hours over a period of 2 weeks.

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• Understanding Financial Statements
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