You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock. You have been given the following objectives:
Upon completing your Net Present Value (NPV) and Future Value (FV) Training Program, employees should be able to do the following:
- Describe the factors that are used in the NPV and the FV formulas.
- Give an example of how to use the formulas for NPV and FV for a stock purchase.
- Summarize the differences between the two formulas and the purpose of using each.