I could never conceptualize the concept of discounting as my undergraduate ECON Profesor explaned it. Dr. Damodaran you simple explation of the fundmenal consept was so enlightening to me. I think I finnaly understand this consept as it realts to value of monely over time. Thank you for posting this session!
I have a doubt. For Q3 in the post class test, I calculated the PV through this formula: PV($8mn,5%,5yr) + PV($12mn,5%,10yr) - PV($12mn,5%,5yr). Shouldn't this be the more accurate way as compared to the formula in the answer sheet i.e. PV($8mn,5%,5yr) + PV($12mn,5%,5yr)/(1.05)^5 ?
Even I used the same formula you have mentioned. In the solution the $12mn is converted to present value first using CF/((1+r)^n) = (12/(1.05)^5). Then the resulting value is used for calculating the present value of the annuity for a period of 5 years. So, both the methods yield same result.
@Mariana's Web this is even more important. I forgot that i seconded this statement and later used the formula exactly as it is written. Mariana is absolutely correct and I was wrong
@mrinvestor2627 saying thank you in 2024 to you. As someone who is learning and tried the post class test - this was the key to me correcting my mistakes. No wonder! You have helped a lot!
Forgive me if this sounds cheesy or offends you sir, but are you a fan of Eminem of some rapper! i.e., your fluency in the subject inspires students & teachers. Thank You.
The main fundamental concepts are explained nicely Sir, we owe a lot to you
I could never conceptualize the concept of discounting as my undergraduate ECON Profesor explaned it. Dr. Damodaran you simple explation of the fundmenal consept was so enlightening to me. I think I finnaly understand this consept as it realts to value of monely over time. Thank you for posting this session!
A living legend. Thank you so much, Professor
Thanks for wonderful classes.
may you please do examples for time value of money.. for each type of cash flows
amazing lecture, took a lot from it
Sir please teach some sums....end of every sessions..
Namstey Sir, I want to ask that how higher preference current consumption will lead to higher discounting rate. Explain with an example.
I see equations and I freak. I'll come back to those
same same TT
I have a doubt. For Q3 in the post class test, I calculated the PV through this formula: PV($8mn,5%,5yr) + PV($12mn,5%,10yr) - PV($12mn,5%,5yr). Shouldn't this be the more accurate way as compared to the formula in the answer sheet i.e. PV($8mn,5%,5yr) + PV($12mn,5%,5yr)/(1.05)^5 ?
Even I used the same formula you have mentioned. In the solution the $12mn is converted to present value first using
CF/((1+r)^n) =
(12/(1.05)^5).
Then the resulting value is used for calculating the present value of the annuity for a period of 5 years. So, both the methods yield same result.
Hey sorry to bother you but how do you get 2.529million for Q1, I computed the formula (in the answer sheet) and got 2444 instead
oh nvm i got it
how did u get the answer to question 2? I though .01/52 = .0001 so I ended up getting just 1%
13:06 formula is incorrect. (1+g) is extra
This is important
@Mariana's Web this is even more important. I forgot that i seconded this statement and later used the formula exactly as it is written. Mariana is absolutely correct and I was wrong
@mrinvestor2627 saying thank you in 2024 to you. As someone who is learning and tried the post class test - this was the key to me correcting my mistakes. No wonder! You have helped a lot!
Forgive me if this sounds cheesy or offends you sir, but are you a fan of Eminem of some rapper! i.e., your fluency in the subject inspires students & teachers. Thank You.