Perpetuities and uneven flows

Perpetuities and uneven flows

Bachelor of Business Studies (BBS) — Second Year

Subject: Fundamentals of Financial Management (MGT 215)

Unit 3: Time Value of Money

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of perpetuities and uneven flows.
• Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

• Present values of perpetuities
• Present and future values of uneven cash flows

Detailed Microsyllabus

1. Perpetuities

   1. Equal payments continuing indefinitely.
   2. Present value under stated rate and timing assumptions.
   3. Interpret sensitivity to the discount rate.

2. Uneven cash flows

   1. Discount or compound each flow separately.
   2. Sum values at a common date.
   3. Check signs, timing and terminal amounts.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 41-43.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.