Ajaväärtused

Ajaväärtused, also known as time values, are financial metrics used to evaluate the time sensitivity of a company's cash flows. They are crucial in capital budgeting and investment analysis, helping investors and analysts understand the value of money over time. The two primary types of ajaväärtused are present value and future value.

Present value (PV) is the current worth of a future sum of money, discounted at a specified rate to account for the time value of money. It is calculated using the formula: PV = FV / (1 + r)^n, where FV is the future value, r is the discount rate, and n is the number of periods. Present value is used to determine the worth of an investment or project by comparing its initial cost to the present value of its expected future cash flows.

Future value (FV), on the other hand, is the value of an investment or cash flow at a specific point in the future, calculated by applying a compound interest rate to the present value. It is determined using the formula: FV = PV * (1 + r)^n. Future value is essential for planning and budgeting, as it helps in estimating the future worth of an investment or the amount of money needed to achieve a specific goal.

Ajaväärtused are also used in other financial concepts, such as net present value (NPV), which is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. A positive NPV indicates that an investment or project is expected to generate more value than its cost, making it a viable option.

In summary, ajaväärtused are fundamental tools in finance that help in making informed decisions about investments and projects by considering the time value of money. They are widely used in various financial analyses and are essential for understanding the true worth of future cash flows.