HAME507: Mastering the Time Value of Money

Cornell University School of Hotel Administration

Course Project: “Mastering the Time Value of Money” Interview Variation

Now you are going to interview a financial professionalto identify the relevance between the tools and calculations you have mastered here, and the ongoing operations of an organization.

Instructions:

  1. Identify a finance professionalwho is in a position to answer your questions, and arrange a brief (15-minute) interview. This may be a person who works for a non-profit arts or charitable organization, a person who serves in a board capacity as a volunteer, an accountant, a bookkeeper, a general manager, etc.
  2. The person being interviewed does not need to serve in a senior leadership capacity within the organization. Anyone who works in a financial management capacity should be qualified to discuss these questions.
  3. You may want to make it clear to the person upfront: the questions do not relate to privileged or confidential financial information.
  4. Ask the finance professional to answer the following questions. Ask for as much detail as you need to round out your full understanding of how TVM tools affect an organization and its plans for spending and financial management.
  5. Record the person’s answers to your questions in this document.
  6. Save your work and submit it according to the instructions in the course.

Interview Questions for Managing the Time Value of Money (Variation)
1. When would you use cash-flow calculations? What kind of information do they give you about operations? / Answer:
2. What kinds of decisions about operations do you make based on what you learn from cash-flow statements? / Answer:
3. How do the value of securities and investments affect what you’re doing on a regular basis? How do they affect your critical mission and overall operations? How do they affect your ability to expand operations or add staff? / Answer:
4. In the course I’m taking on the time value of money, we’ve looked at annuities and perpetuities. How do annuities and perpetuities affect your ongoing work, if at all? / Answer:
5. I’d like to find ways to use the time value of money tools that I’ve been learning about to become a better operational manager. What general recommendations do you have? / Answer:

Save your work and submit it according to the instructions in the course.

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