Basic Accounting Theories

Interest Rate Mathematics - Part 3

Overview

This tutorial provides a framework for analyzing different investments using the fundamental concepts of present value and discounting, and the decision rules of NPV and IRR.

Objective

On completion of this tutorial, you will be able to:

-Recognize the importance of the NPV rule in identifying profitable investments
-Calculate the internal rate of return (IRR) on an investment and use this in conjunction with NPV to decide between investment alternatives

Content

Module 1: NPV & IRR

Topic 1: Net Present Value (NPV)
Topic 2: Internal Rate of Return (IRR)

Module 2: Applications

Details

Code
TEBBA17001001
Venue
ePlatform
Relevant Subject
Type 1 - Dealing in securities
Type 2 - Dealing in futures contracts
Type 3 - Leveraged foreign exchange trading
Type 4 - Advising on securities
Type 5 - Advising on futures contracts
Type 6 - Advising on corporate finance
Type 7 - Providing automated trading services
Type 8 - Securities margin financing
Type 9 - Asset management
Type 10 - Providing credit rating services
Type 11 - Dealing in OTC derivative products or advising on OTC derivative products
Type 12 - Providing client clearing services for OTC derivative transactions
Language
English
Level
Introductory
Hours
SFC:1.00, PWMA:1.00
Fees
Non-Member: HK$420
All Member: HK$285
Staff of Corporate Member: HK$285