Management and Organizational Studies 2310A/B Lecture Notes - Lecture 9: Geometric Progression, Cash Flow, 0 (Year)

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Jun Wang

Document Summary

6. 1 future and present values of multiple cash flows. 6. 2 valuing level cash flows: annuities and perpetuities. You currently have ,000 in a bank account earning 8% interest. You think you will be able to deposit an additional ,000 at the end of each of the next three years: how much will you have in three years? together. You are offered an investment that will pay you in one year, the next year, the year after, and at the end of the following year. No because it is only worth today (market. Ordinary payment is received at the end of the period. In case of payment due, we receive payment at the beginning of the period. When we speak of a cash flow in year x, we generally mean the end of year x, or ordinary payment! A, ab, ab^2, ab^3, , ab^n is a geometric sequence.