Learn future value (compounding), present value (discounting), net present value (NPV) and internal rate of return (IRR)

What you will learn

Understand the concept of the time value of money and its implications for financial decision-making.

Apply financial decision-making skills to real-world scenarios through a case study on solar farm investments, demonstrating the practical application of NPV, I

Master compound interest calculations, future value, and present value formulas.

Gain proficiency in using Excel’s financial functions for various corporate finance applications.

Grasp the concept of opportunity cost and its role in evaluating investment opportunities.

Develop the ability to analyze investment projects using Net Present Value (NPV) and Internal Rate of Return (IRR) methodologies.


Welcome to the “Finance Fundamentals Crash Course: Time Value of Money,” where you’ll delve into the world of corporate finance and unravel its core concepts. This course is designed to provide you with a solid understanding of the time value of money and its vital role in financial decision-making.

Throughout this comprehensive course, you’ll explore compound interest, future value, and present value calculations, gaining valuable insights into how money grows and declines in value over time. By mastering these concepts, you’ll be better equipped to make informed financial decisions for yourself and your organization.

As you progress, you’ll become proficient in using Excel’s powerful financial functions, such as FV and PV, to streamline your calculations and analysis.

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Moreover, this course will introduce you to the concept of opportunity cost, providing you with a deeper understanding of how to evaluate investment opportunities and allocate resources effectively. You’ll then apply these skills by analyzing investment projects using Net Present Value (NPV) and Internal Rate of Return (IRR) methodologies, enabling you to make sound investment decisions.

In addition to the theoretical concepts, this course offers a hands-on learning experience through a real-world case study on solar farm investments. This case study will challenge you to apply the financial decision-making skills you’ve acquired, such as NPV, IRR, and opportunity cost evaluation, to a practical investment scenario. By working through this case study, you’ll gain a deeper understanding of how the core concepts of corporate finance can be utilized in real-life situations, ultimately enhancing your ability to make informed and effective financial decisions.

By the end of this crash course, you’ll have gained the knowledge and skills to navigate the world of corporate finance with confidence. Whether you’re a business owner, a finance professional, or simply looking to expand your financial knowledge, this course is for you. Enroll now to unlock the secrets of corporate finance through the time value of money.




The Time Value of Money and the Financial Cycle
How to Use the Course Resources

Future Value (Compounding)

Compound Interest
Using Excel’s Future Value (FV) Function
Calculating Compound Interest
Using the Future Value Mathematical Formula
How Compounding Frequency Affects Future Value

Present Value (Discounting)

What is Present Value?
Using Excelโ€™s Present Value Function
Present Value of a Stream of Cash Flows

The Opportunity Cost of Capital

Opportunity Cost
The Opportunity Cost of Capital
The Opportunity Cost of Capital in Action

Making Investment Decisions

What is Net Present Value (NPV)
Calculating NPV in Excel
Internal Rate of Return (IRR)
Investment Decision Rules

Investment Decision Case Study – Solar Farms

Solar Farms Case Study
Solar Farms Case Solution Walkthrough