Present Values 3
- Lecture1.1
  
  Introduction
- Lecture1.2
  
  Solutions
- Lecture1.3
  
  List Comprehension Review
NPV vs. IRR 4
- Lecture2.1
  
  Introduction
- Lecture2.2
  
  The Functions Part 1
- Lecture2.3
  
  The Functions Part 2
- Lecture2.4
  
  Testing NPV vs. IRR
Other Profit Measures 4
- Lecture3.1
  
  Introduction
- Lecture3.2
  
  Measures Part 1
- Lecture3.3
  
  Measures Part 2
- Lecture3.4
  
  Investment Timing
Depreciation 4
- Lecture4.1
  
  Introduction
- Lecture4.2
  
  The Basic Problem
- Lecture4.3
  
  Creating the Depreciation Equation
- Lecture4.4
  
  The Tax Shield
Cash Flow Challenges 9
- Lecture5.1
  
  Introduction
- Lecture5.2
  
  Total Cash Flows
- Lecture5.3
  
  Solution 1
- Lecture5.4
  
  Solution 2
- Lecture5.5
  
  Solution 3
- Lecture5.6
  
  Solution 4
- Lecture5.7
  
  Solution 5
- Lecture5.8
  
  Solution 6
- Lecture5.9
  
  Solution 7
Capital Asset Pricing Model 3
- Lecture6.1
  
  Introduction
- Lecture6.2
  
  The Equation
- Lecture6.3
  
  Graphing CAPM
Risky Debt 3
- Lecture7.1
  
  Introduction
- Lecture7.2
  
  Adjusting Debt for Risk
- Lecture7.3
  
  Solution
Unlevering Equity 3
- Lecture8.1
  
  Introduction
- Lecture8.2
  
  The r for Equity
- Lecture8.3
  
  Including Taxes
Weighted Average Cost of Capital 4
- Lecture9.1
  
  Introduction
- Lecture9.2
  
  The Equation
- Lecture9.3
  
  Taxes
- Lecture9.4
  
  Solution
Debt Effect Analysis 2
- Lecture10.1
  
  Introduction
- Lecture10.2
  
  The Effect of Debt on Equity
WACC Challenge 2
- Lecture11.1
  
  Introduction
- Lecture11.2
  
  Solution
Relative Valuation 4
- Lecture12.1
  
  Introduction
- Lecture12.2
  
  Financial Concept
- Lecture12.3
  
  Solving Systems of Equations
- Lecture12.4
  
  Arbitrage
Forward Contract Valuation 3
- Lecture13.1
  
  Introduction
- Lecture13.2
  
  Forward Contract Basics
- Lecture13.3
  
  Forward Contracts

Investment Timing

How can we model when the best time to invest is? All you have to do is see the different values of PV(inflows)-PV(outflows) over time. So if we could invest in these times, when would we? Assume r=5%

Challenge

Pick the best investment from below.

Year	Inflow	Outflow
0	20	-10
2	30	-15
4	40	-25

Solution

print(Cashflow(20,0,.05).PV+Cashflow(-10,0,.05).PV)
print(Cashflow(30,2,.05).PV+Cashflow(-15,0,.05).PV)
print(Cashflow(40,4,.05).PV+Cashflow(-25,0,.05).PV)

If you run these above function, you will see that the best deal is in period 2.

Source Code

Prev Measures Part 2

Next Introduction

Finance

Challenge

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Finance

Present Values 3

NPV vs. IRR 4

Other Profit Measures 4

Depreciation 4

Cash Flow Challenges 9

Capital Asset Pricing Model 3

Risky Debt 3

Unlevering Equity 3

Weighted Average Cost of Capital 4

Debt Effect Analysis 2

WACC Challenge 2

Relative Valuation 4

Forward Contract Valuation 3

Investment Timing

Challenge

Solution

Source Code

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