Time value of money in Engineering Economics

Based on Riggs et al. (1998; Ch. 2), I note the following agenda for the discussion of "The value of money" in Engineering Economics:

1. Interest and the time value of money
2. Reasons for interest
3. Simple interest, compound interest (including nominal interest rates, effective interest rates, continuous compounding
4. Time-value equivalence
5. Compound-interest factors
• Conversion symbols
• Development of interest formulas (e.g. compound-amount factor, present-worth factor, sinking fund factor [uniform series], series compound-amount [uniform series], capital recovery factor [uniform series], etc)
• Midyear accounting convention (ie cash flows are assumed to occur at the end of a time period)
6. Cash flow diagrams
7. Calculation of time-value equivalences

References

1. Riggs, J.L., Bedworth, D.D. and Randhawa, S.U. (1998) Engineering Economics, McGraw-Hill
2. On time value of money: http://en.wikipedia.org/wiki/Time_value_of_money
3. On time value of money (video): http://www.youtube.com/watch?v=CQ8NTSJxoGE&feature=related