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Showing posts from March, 2019

World University and School Bachelor's Degree

In World University and School's monthly business meeting, we talked about you taking an extra five CC MIT OCW-centric classes from this course catalog  - ( accessible from  http://worlduniversityand  ) - to get an online World University and School BA degree - which  courses  would be  Business 200 - Energy Decisions, Markets, and Policies -  Completed  Jan 7, 2018 Business 201 - Technology-Based Business Transformation - Completed Dec 9, 2018 Business 301 - Introduction to Lean Six-Sigma Methods Business 400 - Finance Theory I - Current class and one other course - Information Technology, the Network Society and Global University - Completed Nov 28, 2017

Finance Theory I - Week 2

Chapter 2 - Value - How to Calculate Present Values How are asset values determined? Is the present value positive? - The value today exceeds the investment that is required A positive net present value implies that the rate of return on investment is higher than your opportunity cost of capital. Perpetuity investment - steady stream of cash flows forever Annuity investment - steady stream for a limited period Money has a time value - $ x  (1 + r) t Value of investment 1 year $ x (1 + r ) 2 year  $ x (1 + r) 2 in year 2 you earn interest on both your initial investment and the previous year's interest - compound interest Calculating Present Values   How much do you need to invest today to get a certain amount at the end of a year? Kahn Academy Alanis Academy Lecture Lecture starts at 19:17 Professor continues to mention that we won't understand everything right away and that we have to build knowledge. It will all come together and