(FALL 2009)

A required course in the Certificate Program in Personal Financial Planning.
The value of all investments is the present value of all the cash flows, which will accrue to the investor, discounted at an acceptable rate. This course teaches the student how to measure and evaluate cash flows from a wide variety of investment situations involving annuities, stocks, bonds, real estate, mortgages, promissory notes, personal and real property leases. This course prepares the future financial professional with the skills needed to plan, construct and evaluate annuities such as retirement, savings, education and other special purpose funds intended for future use. Covers applied concepts involving present & future values, net present values, internal rates of return, discounted cash flow analysis, risk analysis, mortgage analysis and common indices of financial performance. Skills taught are those required in the syllabus of the Certified Financial Planner Board of Standard. Practical, real-world oriented. This course must be taken prior to or concurrently with Mgmt X433, Survey of Personal Financial Planning. Students must be able to add, subtract, multiply and divide on a financial calculator before attending. All examples are given in terms of the HP-12C calculator, which is highly recommended. Calculator skills also translated to Microsoft Excel formulas. Students with no finance background are advised to take Mgmt 823.3, Business and Financial Mathematics, before taking Cash Flow Analysis. This course is required to sit for the CFP Examination.

Robert Donohue, B.A., CCIM, real estate investment consultant, The Donohue Company. He is an accredited specialist in commercial and investment real estate and holds the CCIM designation awarded by the National Association of Realtors. He is the author of "Introduction to Cash Flow Analysis," which is a recommended text of the Certified Financial Planners Board of Standards and "Beginning Investments in Real Estate." His previous business experience spans more than 20 years in the pharmaceutical industry.