Time Value of Money and Risk

Description

This course covers time value of money (TVM) principles and risk and return. You will review the basic TVM techniques used in evaluating all financial decisions and their cash flow implications. For Risk and Return, you will learn how risk influences investment decisions, and how to calculate risk and rates of return. Further, you will explore the benefits of diversification and the use of the portfolio concept in investing.

Objectives

Upon successful completion of this course participants will be able to:

• Distinguish between points in time and periods of time as shown by a time line
• Define compounding and discounting
• Compute future value or present value for single payment amounts
• Distinguish between single payments and streams of payments and between uneven streams and annuities
• Solve for the interest rate or time period for simple present value and future value problems
• Define risk
• Describe how risk influences investment decisions
• Calculate risk and rates of return
• Describe how diversification can limit risk
• Explain how diversifiable risk can be lowered using a portfolio approach

Intended Audience

This course is targeted to individuals who meet or exceed the following professional demographics: 

• Mid-level public procurement and central warehouse professionals who serve as senior buyers, managers, directors, or equivalent functions within their respective entities.  
   
• Non-procurement managers and supervisors who either provide procurement functions that support entity programs under delegated authority, or who already have a good understanding of basic procurement principles but wish to get more in-depth, hands-on training. 
   
• Professionals who are employed by local governing entities and special authorities (such as K-12 and higher education, publicly owned utilities, transportation providers, and other publicly funded or created entities) who either serve within or manage the procurement function. 
   
• Supplier managers and supervisors seeking to understand the public procurement function from a more in-depth holistic level, including the policies, standards, and procedures by which public entities must function.