MBA9005

Corporate Finance

Week 1 – Introductory Tutorial

Fiona.McNabb@buseco.monash.edu.au
The time value of money – a matter of perspective (in time)

now

(annuity factor xls)

 PV  C / r PV  C /( r  g )
C  1  D0 1  g  D
PV   1  P0   1
r  1  r t  rg rg

C  1 g  
t

PV   1  
r  g    1  r  

now
n
FVt n
FVt
IRR    C0  0 NPV    C0  (1  r) t  1
t 1 (1  r) t 1 (1  r)
FVt  C  
t t
r 
m  
 r NPV  r
EAR  1    1 EAC 
 m  1 
1  t 
 (1  r) 
To quadruple it?
Must clear registers first ! – [Cfi] [2ndF] [CA]
Must clear registers first ! – [Cfi] [2ndF] [CA]
 Wrap-up for week 1…
• Do all the problems! You need practice and interpretation of
the problems.
• Attend all the tutorials. This is where we’ll discuss the
problems and their real-world application.
• Submit all the tutorial work. It’s 10% of the marks and all
you need to do is show your efforts.
• Don’t assume you know it all.
• Don’t assume the exam will be more tutorial questions.
• Practice with your calculator. In the exam you must know
exactly how to use it.
• Ask questions.
• Get organised.

See you next week – don’t forget to submit your

work via Blackboard before the cut-off!