ABSTRACT
This chapter discusses how to value different types of cash flows associated with different types of investment vehicles. The methods discussed in this chapter can be used to value any type of investment vehicle imaginable. Whether it is a single cash flow or a series of cash flows; whether you need its value today or its value ten years from today; whether interest is compounded annually, quarterly, monthly, weekly or daily, the same principles apply for determining valuation. The methods and models used in this chapter will recur throughout the remaining chapters in various forms, following the fundamental principles and their interactions. This chapter shows the tools; the remaining chapters show how we use them. The first and foremost fundamental principle is grounded in the methods used in this chapter.
