WELCOME to CASHFLOW ANALYSIS

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WELCOME to CASHFLOW ANALYSIS 433.20 R.J.
Donohue CCIM
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PURPOSE OF COURSE

• Acquire basic financial skills
• Prepare for subsequent PFP course work
• Help prepare for CFP exam

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HOW TO DO WELL

• LISTEN WELL (tape recorders ok)
• ADJUST TIME SCHEDULE
• READ ASSIGNED TEXT
• COMPLETE HOMEWORK
• DONT FALL BEHIND
• ASK QUESTIONS
• BE ON TIME
• DONT HOLD IN-CLASS CONFERENCES

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HOW AM I GRADED ?

• Homework completed on time 30
• Scheduled tests (4) 30
• Final Exam 40
• Minimum passing grade 70
• Miss more than 2 classes see me

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CONTACT INFORMATION

• E-MAIL ROBERTDONOHUE_at_GMAIL.COM
• PUT Student IN SUBJECT LINE
• WEB SITE WWW.REGENTSCHOOLPRESS.COM For UCI
  Students Only annuity
• INSTRUCTOR 949.833.3656 gt 4 p.m.
• FRANCINE BERG 949.824.4661

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Math Skills

• 8 4 2 ?
• (8 4) 2 6
• 8 (4 2) 10
• Precedence PEMDAS BODMAS

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PRECEDENCE

• Brackets
• Order (exponent)
• Division
• Multiplication
• Addition
• Subtraction

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PRECEDENCE

• PARENTHESES
• EXPONENT (1-8)
• MULTIPLICATION
• DIVISION
• ADDITION
• SUBTRACTION

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(No Transcript)
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HP 12C TEST

• -8,8,8,8,8,8,8,8,8,8
• USER f g BEGIN GRAD D.MY C PRGM

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HP 12C

• Function test
• Reverse Polish Notation (RPN)
• Accurate to 10 places (uses all)
• Set decimal places
• Store and retrieve numbers
• Add, Subtract, Multiply, Divide

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CALCULATOR SYMBOLOGY

• n number of periods
• i interest rate or discount rate
• PV Present Value (cash in hand)
• PMT periodic payment made or received
• FV Future (or reversionary) Value of investment

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WHAT IS CASHFLOW?

• Income
• Less Expenses
• Operating Income

Operating Income Depreciation
Amortization Cashflow (EBITDA)
Transfer of cash from one set of pockets to
another
-

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Vantage Point of Analysis

• Choose one vantage point only
• Select giver and receiver of cash
• Dont change vantage point
• Whenever possible, analyze from point of view of
  investor.
• Most investments begin with a negative cashflow

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BASIC FORMULA
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FORWARD AND BACKWARD
INTEREST RATE
DISCOUNT RATE
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SIMPLE INTEREST

• 1,000 _at_ 10 FOR 5 YEARS
• FV 1,000 5(1,000 .10) SIMPLE

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COMPOUND INTEREST

• FV 1,000 (1 i) 1 1,000(1i)
• 1,000(1i) (1i) 1,000(1i)2
• 1,000(1i) 2 (1i) 1,000(1i)3
• FV 1,000(1i) n
• FV PV(1i) n

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WHEN PMTS ARE INVOLVED
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The T-Bar
FV 100,000
FV 100,000
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STORAGE REGISTERS
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HP 12C Registers
ENTER

- X
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HP 12C Registers
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MULTIPLY BY A CONSTANT
X