time value of money

# Tag: time value of money

### Time Value of Money

See Also: Valuation Methods Adjusted Present Value (AVP) Net Present Value Method Internal Rate of Return Method Required Rate of Return Time Value of Money (TVM) Time value of money is the difference between an amount of money in the present and that same amount of money in the future. Having money now is more

### Retainage

Retainage Definition What is retainage? What is a retainage fee? In the contracting business, vendors define this term as a portion of the payment that is withheld until the completion of a project. The client doesn’t pay the contractor remaining payment until all work on the project is complete. It is defined the risk clients

### Maturity Date Defined

See Also: Coupon Rate Bond Covenant Definition of a Bond Contract Long Term Debt Non-Investment Grade Bonds Par Value of a Bond Maturity Date Defined In finance, maturity date defined is the date on which a debt instrument is due. For example, when a bond reaches maturity, the issuer must pay the bondholder the principle

### NPV vs Payback Method

See Also: Payback Period Method Bailout Payback Method Rule of 72 NPV vs Payback Method NPV (Net Present Value) is calculated in terms of currency while Payback method refers to the period of time required for the return on an investment to repay the total initial investment. Payback, NPV and many other measurements form a

### Future Value

See Also: Valuation Methods Net Present Value Method Adjusted Present Value (APV) Method Present Value (PV) Opportunity Cost Future Value Definition Future value (FV) is the value of a sum of money at a future point in time for a given interest rate. The idea is to adjust the present value of a sum of

### Capital Asset Pricing Model

See Also: Cost of Capital Cost of Capital Funding Arbitrage Pricing Theory APV Valuation Capital Budgeting Methods Discount Rates NPV Required Rate of Return Capital Asset Pricing Model (CAPM) The Capital Asset Pricing Model (CAPM) is an equilibrium model that measures the relationship between risk and expected return of an asset based on the asset’s