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What is the present value today of your projected monthly retirement check of $2,000 (your estimate which you will receive when you reach 65)? You turn 65 in 25 years and you think inflation will be 6 percent a year between now and your retirement.

What is the concept that money

Saturday, 14 March 2015 by

What is the concept that money has time value?

2. You have determined the profitability of a planned project by finding the present value of all the cash flow from that project. Which of the following would cause the project to look less appealing, that is, have a lower present value? a. The discount rate decrease. b. The Cash flows are extended over a

Problem #1 Smolinski company is considering an investment which will return a lump sum of $5000,000 five years from now. What amount should simolinski company pay for this investment to earn a 15% return. Problem #2 Kilarny company is considering investing in an annuity cintract that will return $20,000.00 annually at the end of each

Acme plans to construct a new manufacturing facility in 14 years. If Acme estimates that today’s cost of the new plant is $975318642 and annual inflation is A% (A = 9), how much will the manufacturing plant cost in 14 years

Please answer the following finance problems in detail and not just the steps that you take to arrive at the answer, Thanks! 1) Present Values. Compute the present value of a $100 cash flow for the following combinations of discount rates and times: A .r = 8 percent. t = 10 years. B. r =

Can you identify any Excel functions or web-based resources for doing the financial calculations (of finance deals with the time value of money and problems such as simple and compound interest, annuities, and amortization) For Excel functions, give the name of the function, identify the equivalent formula in the text and explain how to use

2. Present Value What is the present value of: 1. $9,000 in 7 years at 8 percent? 2. $20,000 in 5 years at 10 percent? 3. $10,000 in 25 years at 6 percent? 4. $1,000 in 50 years at 16 percent? 3. Future Value If you invest $9,000 today, how much will you have: a.

1) Given an interest rate of 10% per year, what is the value at the end of year 5 of a perpetual stream of $120 annual payments starting at the end of year 9? 2) Theoretical decision to release a new revision of a book: Company estimates the new revision will cost $40,000. Cash flows

The basic idea behind the concept of

Saturday, 14 March 2015 by

The basic idea behind the concept of time value of money is?