Think & Done

ThinkAndDone.com offers tutorials on financial management topics such as time value of money, price of bonds and stocks, IRR, MIRR, NPV, Payback Period and much more.

Mastering CFA coursework requires understandig of basic time value of money concepts on which the other concepts are built upon. For you to master CFA curriculum you need firm understanding of time value of money concepts that lead to evalution of investment proposals with DCF or discounted cash flow techniques of capital budgeting such as IRR, internal rate of return, NPV, net present value, MIRR , modified internal rate of return, Payback and Discouted Payback Period, Profitability Index, bond price calculation, and approximating the Yield to matruity, YTM, Yield to Call, YTC, duration of a bond, Coupon price calculation, and much more. Here we try to expalin these and other topics in detail illustrated with hands on example that you can try for yoursel.

1. DCF analysis
   This series of tutorials explore topics ranging from discounted cash flow methods including IRR, MIRR, NPV, profitability index, payback period, discounted payback period. We also discuss approaches to estimating free cash flows, weighted average cost of capital, replacement chain analysis. Two of the tutorials narrow down on techniques used for finding missing cash flows when either IRR or NPV is known. Comparisons of DCF techniques is provided along with alternative methods for finding IRR with Quadratic Equation
2. TVM Concepts
   This series of tutorials explore time value of money concepts such as finding present and future value of ordinary annuity and annuity due with uniform series of cash flows and with uneven cash flows
3. Stocks and Bonds
   This series of tutorials explore yield on stock and bonds; yield is also referred to as market rate of return