金融ch3 5 tools 35章工具目前价值财务报表分析基础知识瓦斯.pdf

Otherthingsremainingequal,thevalueofcashflowsin

futuretimeperiodswilldecreaseas

•thepreferenceforcurrentconsumptionreases.

•expectedinflationreases.

•theuncertaintyinthecashflowreases.

DiscountingandCompounding

•Themechanismforfactoringintheseelementsisthediscountrate.

•DiscountRate:Thediscountrateisarateatwhichpresentand

futurecashflowsaretradedoff.Itorporates-

(1)Preferenceforcurrentconsumption(GreaterHigher

DiscountRate)

(2)expectedinflation(HigherinflationHigherDiscountRate)

(3)theuncertaintyinthefuturecashflows(HigherRiskHigher

DiscountRate)

•Ahigherdiscountratewillleadtoalowervalueforcashflowsin

thefuture.

•Thediscountrateisalsoanopportunitycost,seitcapturesthe

returnsthatanindividualwouldhavemadeonthenextbest

opportunity.

•Discountingfuturecashflowsconvertsthemintocashflowsin

presentvaluedollars.Justadiscountingconvertsfuturecashflows

intopresentcashflows,

•Compoundingconvertspresentcashflowsintofuturecashflows

PresentValuePriple1

Cashflowsatdifferentpointsintimecannotbecomparedand

aggregated.Allcashflowshavetobebroughttothesamepointin

time,beforecomparisonsandaggregationsaremade.

TimeLines

Figure3.1:ATimeLineforCashFlows:$100ashFlowsReceived

atofEachofNext4years

CashFlows

$100$100$100$100

4

0123

Year

CashFlowTypesandDiscountingMechanics

Therearefivetypesofcashflows