You have been asked by a manager in your organization to put together a training

Question

You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock. You have been given the following objectives:

Upon completing your Net Present Value (NPV) and Future Value (FV) Training Program, employees should be able to do the following:

Explain NPV and FV.

Describe the factors that are used in the NPV and the FV formulas.

Give an example of how to use the formulas for NPV and FV for a stock purchase.

Summarize the differences between the two formulas and the purpose of using each.

Develop a 10- to 12-slide PowerPoint Presentation (excluding title slide and reference slide) that cover each of the above topics. In the slide notes, include your explanations for each topic above. You must use a minimum of two scholarly sources. Format the presentation and cite your resources according to the APA 6th edition style guide as outlined in the Ashford Writing Center.

If you're able to create the powerslide you can email it to me @ jasonjl85@yahoo.com

Thanks!

Explanation / Answer

Future value is calculated to determine the value of investment that we will invest today for a specific period of time at a specified intertest rate , whereas NPV criteria is used to determine the net present value of project that is the comparison between the cash outflows and present value of cash inflows that we are going to receive from the project .

Future value is calcualted as follows = Present Value ( 1+R) ^N

Net Present Value is calcualted as follows = Cash outflows - Present value of cash inflows

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