Lala Lajpatrai Institute of Management

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Innovative Pedagogy Dr Trushna K

Subject: Corporate Finance

Activity: PowerPoint Presentation – Valuation Concept

Objective: To help students critically analyze how branding and packaging influence consumer perception and decision-making, often overriding actual product quality.

Objectives:

To develop a clear understanding of the Time Value of Money (TVM) and its role in financial decision-making.

To equip students with the ability to calculate Present Value (PV), Future Value (FV), Annuities, and Loan Amortization.

To enable students to interpret financial problems and apply appropriate TVM formulas to solve practical illustrations.

To foster collaborative learning and improve presentation and analytical skills through peer-based pedagogy.

To link valuation concepts with real-world financial scenarios like investment appraisal, loan repayment schedules, and annuity valuations.

Activity Description:

An evaluation score card maintained. The PowerPoint Presentation conducted from 20th Feb to 26th Feb 2025

Findings

Enhanced Conceptual Understanding of Time Value of Money (TVM):

Students demonstrated a clear understanding of the core principles of TVM, including present value, future value, annuities, and loan amortization. Through practical problem-solving exercises and case-based discussions, they gained clarity on how the value of money changes over time due to interest and inflation.

Ability to Analyze Insurance Policy Proposals:

Students learned how to analyze the financial viability of insurance policies by calculating the present value of future benefits and comparing them with premium costs. They understood how surrender value, maturity value, and premium outflows can be evaluated using TVM techniques to assess the worth of different insurance products.

Critical Evaluation of Loan Proposals:

The activity enabled students to apply valuation concepts in assessing loan proposals for buying a flat, a car, or starting a business. They prepared loan amortization schedules, calculated EMIs (Equated Monthly Installments), interest outflows, and total repayment obligations over different loan tenures and interest rates. Students also compared fixed and reducing balance interest systems.

Application of Annuities in Financial Planning:

Students learned how annuity calculations are used in scenarios such as retirement planning, investment planning, and systematic investment plans. They successfully demonstrated the calculation of both ordinary annuities and annuities due, highlighting the importance of payment timings in determining future values.

Effective Presentation and Communication Skills:

Through this pedagogical activity, students developed their ability to present financial concepts and calculations in a structured and comprehensible manner. They used slides, illustrations, charts, and real-life financial data to support their explanations.

Improved Decision-Making Skills:

The activity fostered analytical thinking and practical decision-making abilities among students. They evaluated financial alternatives like selecting the most economical loan, comparing insurance policies, and choosing suitable investment options based on TVM-based calculations.

Outcomes:

The activity achieved the intended learning objectives and yielded the following outcomes:

  • Students can now independently perform Present Value, Future Value, Annuity, and Loan Amortization calculations.
  • They have the ability to assess and compare financial proposals such as insurance plans and loan offers using valuation techniques.
  • Students are capable of interpreting and analyzing financial data to make informed financial decisions.
  • Enhanced financial literacy, particularly in personal financial management areas such as buying assets, insurance planning, and retirement savings.
  • Development of presentation, teamwork and communication skills through collaborative learning.
  • Increased awareness of how theoretical finance concepts apply to real-world business and personal financial decisions.