Time Value of Money

ArXiv ID: ssrn-882850 “View on arXiv”

Authors: Unknown

Abstract

This is a course material from the book Investment Decision Making. For Firm and Project Valuation. The book is originally in Spanish and is untitled as Decisio

Keywords: Project Valuation, Capital Budgeting, Firm Valuation, Investment Decision Making, Discounted Cash Flow, Corporate Finance

Complexity vs Empirical Score

  • Math Complexity: 3.0/10
  • Empirical Rigor: 1.0/10
  • Quadrant: Philosophers
  • Why: The text is course material on a foundational financial concept, focusing on conceptual explanation rather than advanced mathematics or empirical backtesting. There is no code, data, or implementation details provided.
  flowchart TD
    A["Research Goal:<br>Time Value of Money Application"] --> B["Methodology:<br>Discounted Cash Flow Analysis"]
    B --> C{"Data Inputs:<br>CF, Rate, Time Period"}
    C --> D["Computational Process:<br>Net Present Value Calculation"]
    D --> E{"Decision Rule:<br>NPV >= 0?"}
    E -- Yes --> F["Outcome:<br>Project Accepted"]
    E -- No --> G["Outcome:<br>Project Rejected"]
    F --> H["Key Finding:<br>Value Creation through<br>Investment Selection"]
    G --> H