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Cash Flow Valuation or DCF: Develop Your Financial Literacy

Learn the language of finance - the time value concepts, & step toward your financial literacy with Excel applications.
Instructor:
Md Mohan Uddin
3,048 students enrolled
English [Auto-generated]
Explain why timing can affect the value of money
Draw a cash flow timeline for visualizing cash flow(s)
Differentiate compound interest from simple interest
Calculate the future value and present value of a single cash flow
Calculate the future value and present value of multiple cash flows
Differentiate between an annuity and a perpetuity
Differentiate between an ordinary annuity and an annuity due
Calculate the future value and present value of an ordinary annuity, an annuity due, and a perpetuity

Last updated: October 18, 2018.

THIS COURSE IS WITH…

  • lifetime access

  • 30-day money back guarantee!

  • availability on iOS and Android

  • certificate of Completion

> Are you going to start the first course in finance? 

> Do you have issues in understanding the concept of time value of money and cash flow valuation? 

> Are you a (personal/business) financial decision maker who needs a foundation in the area of finance? 

> Do you solve finance exercises/problems STEP BY STEP but do not really know why the STEPS are like that? 

> Are you planning for a professional qualification like CFA in the area of Finance? 

> Do you want to start using spreadsheet software like Excel for financial analysis, modelling, and valuation? 

If your answer is ‘YES’ to any one of the above questions, THIS COURSE IS THE PERFECT ONE FOR YOU TO START WITH… 

Time value of money: 

  • Why is the timing of cash flow important?

Interest rate:  

  • What is the interest?

  • How are the simple interest and compound interest different?

Future value and present value:  

  • How to calculate the future value of a single cash flow?

  • How to calculate the future value of multiple cash flows?

  • How to calculate the present value of a single cash flow?

  • How to calculate the present value of multiple cash flows?

If you are looking for the answers to these questions, you have chosen the right course.  

Almost everyone has to make financial decisions. Even if one is not a business manager or portfolio manager, s/he must make financial decisions appropriately for his/her personal financial well-being, which necessitates achieving financial literacy. The instructor recognizes the importance of financial literacy for all. This course is also suitable for absolute beginners who have never attended a finance course before, wants to start achieving the financial literacy at a basic level, and may continue learning finance at advanced level in future.

Most of the personal and business level financial decision making involve the valuation of present and future cash flows. This course covers the essential concepts for understanding such valuation.

This course consists of several video lectures that will be updated over time and based on students’ requests, quizzes at the end of every section for testing your level of understanding, and additional resources. The lectures contain explanations of necessary concepts along with examples and illustrations. Some of the lectures will be prepared for demonstrating the MS Excel applications of the concepts covered in this course.

The instructor welcomes his students for continuous discussion with him. Any sort of input for improving the course is also appreciated. He also expects your positive and genuine review and rating of the course.

Introduction

1
About the course

The introduction. Students get an overall idea about the scope of the course.

2
How to participate in this course

The instructor shows how the students should participate in this course to get the maximum benefit.

3
Timing of cash flow: Why does it matter?

In this lecture the course instructor explains why timing, in addition to the amount, of cash flow is important. After completing this lecture, students should be able to recognize how the timing may affect the value of a particular cash flow.

4
End-of-section quiz

Cash Flow Time Line

1
Visualizing cash flow(s) using a time line

In this lecture, the instructor explains the concept of cash inflows and outflows, and how the amount and timing of such cash flows can be shown using a time line. A student should be able to exhibit different types of cash flows using a cash flow time line after completing this lecture.

2
End-of-section quiz

The Interest: Simple and Compound

1
Future value at a simple interest

The main goal of this lecture is to introduce the simple interest as a compensation for delaying any cash flow. The student should be able to recognize that any delay of cash flow is justified if an interest is provided.

2
The compound interest

Compound interest is commonly used in the real world. Therefore, the instructor explains how the compound interest is different from the simple interest. After attending this lecture, a student should understand how the compound interest works in the real world.

3
End-of-section quiz

Future Value and Present Value of a Single Cash Flow

1
Future value of a single cash flow

This lecture is very important for understating the key relationships among cash flow, interest, time, and the value of cash flow. The instructor explains the derivation of the basic future value formula along with an example of its application. A student should be able to calculate the future value of a single cash flow after completing this lesson attentively.

2
Present value of a single cash flow

The instructor shows how the present value is derived from the future value formula and it's application with an example. It will be very easy for a student to calculate the present value of a single cash flow after completion of this lecture.

3
End-of-section quiz

Future Value and Present Value of Multiple Cash Flows

1
Future value of multiple unequal cash flows

In this lecture, the instructor explains how the basic future value formula can also be applied to calculate the future value of a series of cash flows with an example. The student should acquire the ability to estimate the future value of any financial transactions involving multiple cash flows.

2
Present value of multiple unequal cash flows

The instructor uses an example to estimate the present value of multiple future cash flows. After attending, a student should be able to apply the time value of money concept for the valuation of multiple future cash flows.

3
Multiple unequal cash flows
4
Annuity

After completing this lecture students will be able to understand the definition of annuity, identify an annuity based on its main characteristics, and illustrate and annuity using a cash flow time line.

5
Ordinary annuity and annuity due

Students will be able to understand the difference between an ordinary annuity and an annuity due.

6
Future value of an ordinary annuity

After completing this lecture the students would be able to understand the formula of future value of an ordinary annuity along with its derivation. They will also be able to apply the knowledge to calculate the future value of a real world ordinary annuity.

7
Future value of an annuity due
8
Present value of an ordinary annuity
9
Present value of an annuity due
10
Perpetuity
11
Present value of a perpetuity

Application via Excel Models

1
Modelling loan amortization schedule in Excel spreadsheet

In this lecture the instructor demonstrate the modelling of a loan amortization schedule in Excel spreadsheet. The students can follow the demonstration and prepare their own loan amortization schedule.

2
Preparing a business project valuation model in Excel

Business organizations and entrepreneurs often invest in new projects. The decision of the new investment should be based on the comparison between the amount invested and the value of the project. If the value of the project is greater than the amount of investment, the project is acceptable. In this lecture the business project valuation model will be demonstrated using MS Excel software.

3
Spreadsheet Assignment 1 - Loan Amortization Schedule

Summary

1
Summary of the Course

The instructor provides a summary diagram of the course so that students can review their understanding in an organized way.

You can view and review the lecture materials indefinitely, like an on-demand channel.
Definitely! If you have an internet connection, courses on Udemy are available on any device at any time. If you don't have an internet connection, some instructors also let their students download course lectures. That's up to the instructor though, so make sure you get on their good side!
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3 hours on-demand video
Full lifetime access
Access on mobile and TV
Certificate of Completion