Future Values and Compound Interest1

You have $100 invested in a bank account. Suppose banks are currently paying
an interest rate of 6 percent per year on deposits. So after a year, your account
will earn interest of $6:
Interest = interest rate x initial investment2 = .06 x $100 = $6
You start the year with $100 and you earn interest of $6, so the value of your
investment will grow to $106 by the end of the year.
Notice that the $100 invested grows by the factor (1 +.06) = 1.06. In general, for
any interest rate r, the value of the investment at the end of 1 year is (1 + r)
times the initial investment: Value after 1 year = initial investment x (1 + r) =
$100 x (1.06) = $106
What if you leave this money in the bank for a second year? Your balance, now
$106, will continue to earn interest of 6 percent. So Interest in Year 2 = .06 x
$106 = $6.36 $106 + $6.36 = $112.36
Value of account after 2 years = $100 x 1.06 x 1.06 = $100 x (1.06) 2 = $112.36
If you keep your money invested for a third year, your investment multiplies by
1.06 each year for 3 years. By the end of the third year it will total $100 x (1.06) 3
= $119.10
Clearly for an investment horizon of t year, the original $100 investment will grow
to $100 x (1.06)t. For an interest rate of r and a horizon of t years, the future
value of your investment will be:
Future value of $100 = $100 x (1 + r)t

Present Value
We have seen that $100 invested for 1 year at 6 percent will grow to a future
value of 100 x 1.06 = $106. Lets turn this around: How much do we need to
invest now in order to produce $106 at the end of the year? Financial managers
refer to this as the present value (PV) of the $106 payoff.
Future value is calculated by multiplying the present investment by 1 plus the
interest rate, 0.06, or 1.06. To calculate present value, we simply reverse the
process and divide the future value by 1.06:
Present Value = Future Value 1.06
= 106 1.06
= 100
In general, for a future value or payment t periods away, present value is:
Present Value = Future Value after t periods (1 +r)t

1 Bileik faiz
2 lk yatrm, balangtaki yatrm
1

In this context the interest rate r is known as the discount rate and the present
value is often called the discounted value of the future payment. To calculate
present value, we discounted the future value at the interest r.
Suppose you need $3000 next year to buy a new computer. The interest rate is 8
percent per year. How much money should you set aside now in order to pay for
the purchase? Just calculate the present value at an 8 percent interest rate of a
$3000 payment at the end of one year. This value is:
3000 (1 + 0.08) = 2778
The longer the time before you must make a payment, the less you need to
invest today. For example, suppose that you can postpone buying that computer
until the end of 2 years. In this case we calculate the present value of the future
payment by dividing $3000 by (1.08)2 = 2572

Net Present Value

Bir projenin/yatrmn getirmesi beklenen artml/marjinal nakit aklarnn
(incremental cash flows), sermaye maliyeti faizinden iskonto edilerek bulunan, t 0
anndaki deeridir. lerideki ya da gemiteki bir deeri bugne tamaktr.
Nakit ak belli olan bir yatrmn bugnk deerini bulmaya yarar. Gelecek
yllardaki girdiler, faiz dlerek toplanr ve ilk yatrmdan karlr. sonu pozitifse
yatrm mantkldr, aksi bir durumda ise zarar edilecektir.
Bir yatrm projesinin edilebilmesi iin projeden elde edilen gelirlerin masraflardan
fazla olmas gerekir ve bunun iin de tm gelir-giderlerin net imdiki deerinin
hesaplanmas lazmdr. Bu bir yntemdir ve proje analizlerinde en ok kullanlan
yntemler arasndadr. Net imdiki deer yntemiyle bir projenin iktisadi mr
boyunca salayaca net nakit girilerinin ve yatrm giderlerinin belli bir
indirgeme oran ile bugne indirgenen deerleri arasnda fark bulunur. Bir
projenin bu ynteme gre kabul edilmesi iin net imdiki deerinin sfra eit ya
da byk olmas gerekir.
Kullanlan iskonto oran bydke yatrmn net imdiki deeri azalr. skonto
oran kldke net imdiki deeri artar.
NPV is simply a capital budgeting tool. Whole purpose of NVP is to help a firm
assess the level of importance certain capital budgeting projects have.
We usually say the word net when we are talking about the results of different
amounts combined. For example, you are at a restaurant and you order food and
the food bill is $100. Then, they give you a discount of $15 (-15). Thats why the
number is negative because they are subtracting if from your bill. At the end,
your final bill wil probably be $85 net.
Another example, lets say that today you have to pay your frined $100. After you
pay him $100, we have a negative sign in front of $100 (-$100) because you are
not earning, you are paying so you are loosing. But, lets just say after a year
your friend says that he will give you $105. So, you pay $100 today and you get
back $105 after one year. So what is the simple net value of these two actions
combined? Well, the net value would be $5. However, we also have to think about
2

the interest rate given by the bank. How much would the bank give you in
interest if instead of putting your $100 to your friend, you instead put your
money in the bank. Lets just assume, that the bank is giving 6% interest rate
right now. So the question is, what is the net present value of these two amounts
after we consider the 6% interest rate given by the bank.
Net Present Value, we are talking about taking a project and saying how come we
value it in terms of the cash outflows and cash inflows. Lets use an example
here. To be able to reject or accept the project, we first need to look at cash flows
associated with the project. Lets say that this project ends in 5 years. Lets say
that this project will cost us $10,000 i.e. thats the cost we have to lay out to start
this project. So, thats negative, thats a cash outflow (cepten kan para). But
now, we want to think about the inflows of these. Lets say that in year one the
inflow will be $2500 i.e. thats positive. Then in year two we estimate $4000, in
year three $5000, $3000 in period four and in the final year it will generate
$1000 cash. So, we want to look at the cash flows and we want to say okey lets
find the way that we can somehow account for the time value of money because
we know that a $1000 in period five is not worth to $1000 today. And we want to
somehow net these inflows with the cash outflow.
Before calculating the npv, we dont need to discount our $10,000 because
$10,000 today is $10,000 today so we dont have to worry about that. But then
we are gonna add to that the cash inflows but discount it. Weve got to discount
the $2500 in the period one. Before doing that we need to know the formula of
present value of single cash flow: cash flow (1 + rate) Time. We need a discount
rate here. We could have earned 6% lets say, the investment with similar risk.
Anyway, we need to calculate this formula here. We are going to use this formula
for each cash inflow.

NVP= -10,000 + 13,239, so this where the net part comes in. Were netting the
cash outflow and the inflows which is the discounted value of the inflows. We take
it together and thats gonna give us
= $ 3,239. This is the net present
3

value of this project. What does that mean and how to interpret? In general,
assuming that the company has cash to do the project, what you wanna do is you
want to use a rough row hereof if the NPV > 0, then accept the project.
Recall out discount rate that we chose of 6%. Well, we can kinda view that as an
ultimately opportunity cost the 6%. If we dont invest the money in this project
here, if we dont spend it there, well it could be somewhere else, maybe you could
have invested in stocks or bonds or something that would have earned us the 6%
return. So, the capital is not free, the money that do this project is not free, it
could have been deployed in elsewhere to earn a return. So when the NPV is
greater then 0, what this is basically saying is that we have added value to the
firm above and beyond the 6% that we otherwise could have done with that
money. So, by accepting this project we are actually earning a return to the firm
that is higher than this discount rate.

Internal Rate of Return

bir projenin nakit klarnn imdiki deerleri toplamn; nakit girilerinin imdiki deerleri
toplamna eitleyen iskonto orandr.
icsel getiri orani'dir.
nce gayet kasmak suretiyle nakit aklarmz karyoruz bir de stne enmeyip irr hesaplyoruz.
bir baktk %10 kt. eee ne demek ki bu imdi? aslnda ok basit bir ifadeyle gnn sonunda
yatrdmz paray proje sresince %10 ile bankada iletiyoruz gibi olacakm demek.
sonra dnp bakyoruz, risksiz olarak adledilecek devlet tahvilleri, banka faizleri u bu senelik %
ka getirirdi parama? baktk ki %8. demek ki neymi efendim, bu iin riskini alarak %2 fazla getiri
salayacakmz.
faizler dtke baka bir deyile kn devirip para kazanmak zorlatka reel sektrn bymesi,
harekete gemesinin de temel nedeni budur. nk o zaman daha dk i verim oran * olan bir
proje bile faizden fazla getireceinden, yatrmc sfatnn hakkn vererek yatrm yapacaktr, sonra
gelsin istihdam, gelsin byme.

Literatrde i karllk oran, i getiri oran, sermayenin marjinal verimlilii, yatrmn marjinal
verimlilii olarak da adlandrlan i verim oran (VO), yatrm projelerinin deerlendirilmesinde
kullanlan bir orandr. verim oran, bir yatrm projesinin net bugnk deerini sfra eitleyen
dier bir deyile nakit girilerinin bugnk deerini nakit klarnn bugnk deerine eitleyen
iskonto oran olarak tanmlanr. verim oran ayn zamanda yatrmn ne oranda katma deer
yaratacan ifade eder.
Yatrm karar alnmasnda i verim oran, yatrmcnn yatrmdan bekledii karllk oran ile
karlatrlr. Projenin riskine, yatrmcnn beklentisine vb. parametrelere gre deimekle birlikte
yatrmdan beklenen karllk orannn minimum deeri sermaye maliyeti olarak kabul edilir.
Karlatrma sonucunda projenin kabulne veya reddine karar verilir. Herhangi bir proje iin
hesaplanan i verim oran, yatrmdan beklenen karllk oranndan yksek ise proje kabul edilir,
deil ise proje red edilir.

 verim oran > Yatrmdan beklenen karllk oran => Proje iin yatrm karar alnr.
verim oran < Yatrmdan beklenen karllk oran => Proje red edilir.
Birden fazla projenin karlatrlmas sz konusu ise i verim oran yksek olan proje tercih edilir.
devlet tahvili ve hazine bonusu fiyatlar ile faiz oranlar arasnda negatif korelasyon olduu iin

Faiz Oran Riski: Faizlerdeki art bonolarn deerini kaybetmesine neden olurken, faizlerdeki d
bono fiyatlarnn ykselmesine neden olur. Piyasa Borlanma Oran (Aada) Tahvil Fiyat (Yukarda)
Piyasa Borlanma Oran (Yukarda) Tahvil Fiyat (Aada) Piyasa faiz oran ykselerek tahvilin kupon
orann getiinde, yatrmclar piyasadan daha yksek oranl borlanabilecekleri iin tahvil deer
kaybeder. Faizlerin ykselmesi bir risk oluturduu gibi dmesi de tahvil yatrmclar iin bir avantaj
yaratr. Piyasa faiz oran dtnde tahvilin kupon faiz oran sabit kalacandan, tahvilden piyasada
olduundan daha fazla getiri elde edilir. Dolaysyla tahvil deer kazanr. Yatrmc isterse tahvil
fiyatnn art dolaysyla vadeye kadar beklemeden elindeki tahvili yksek fiyattan satabilir.

For example, let's assume you purchase a Company XYZ bond at 100% of par. The
bond currently has an 8% yield. If the bond price increases to 101.5 when yields fall
10 basis points and the price falls to 99.5 when yields rise by 10 basis points, then
using the formula above, we could calculate that the bonds effective duration is:

diyelim ki irket, nmzdeki temmuz aynn ilk haftasonunda deniz kysnda bir otelde *,
seminer/tatil tadnda bir irket birliktelii dzenliyor ve otelin 10.000 tl'lik cretini de ocak aynda
erken rezervasyon ile pein dyor. rezervasyon iptali durumunda %100 geri deme yaplacan
varsayalm*
1) prepaid expense olarak yazlan bu hesap, irketin kontrolndedir, zira temmuz aynda alaca
hizmeti almadan, vazgeip parasn geri alabilir.
2) evet, para ile llyor, 10.000 tl.
3) fayda salayacak; irket alanlar, paras denen bu hizmeti alacaklar, motivasyon, yemek
imek cabas.
temmuz aynda bu seminer/tatilin bittii gn, irket alanlar otelden karken, bu hizmetin
faydas artk tkendii iin, gider tahakkuk etmi olacak ve de prepaid expense hesab, gnlk
deftere yazlacak bir dzeltme hesab ile gidere (expense) dnecektir.

Bir irketin bir yllk faaliyet dneminde elde ettii net kar zerinden datt kar paydr.

irkette sermayesi bulunan ortaklar datlan temettden pay alma hakkna sahip olur.