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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://worlduniversityandschool.org ) - 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 we will have an epiphany of understanding.

Cash Flow - money that is c…