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Description
This interactive tutorial demonstrates the concept of time value of money and how it is applied in the evaluation of investment opportunities. Two basic tools that rely on this concept the Net Present Value (NPV) and the Internal Rate of Return (IRR) are described and compared to each other and to some more intuitive alternative methods.
These numerical techniques are explained in an easily-understood visual manner through a series of interactive graphs and animations. Questions and numerical exercises throughout allow students to apply these concepts and reinforce the learning objectives.
This interactive tool has been designed to complement the paper based tutorial also included which provides a more in depth discussion of the concepts and their application.
