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A common phrase is “time is money”. Please explain what is meant by this phrase?

The amount of money that would need to be invested today at a given interest rate over a specified period in order to equal a future amount is called _______. future value, present value, future value interest factor, or present value interest factor I believe the answer is – future value interest factor – please

Present Value Years Interest Rate Future Value 4 4% $15,451 9 12% 51,557 14 22% 886,073 18 20% 550,164

4. You have just won the lottery and you have three choices to choose from as to how you will receive your winnings. Choice I: You would receive a lump sum payment of $75,000 today. Choice II: You would receive $10,000 at the end of each of the next 8 years Choice III: You would

Newman Medical Center is considering purchasing an ultrasound machine for $1,150,000. The machine has a 10-year life and an estimated salvage value of $30,000. Installation costs and freight charges will be $19,200 and $800, respectively. The center uses straight-line depreciation. Newman’s cost of capital is 9%. The medical center estimates that the machine will be

1. Person A’s portfolio is worth $100,000 today. He expects to retire in 10 years and also expects to earn an 8% return per year on his portfolio until he retires. Person A’s yearly statement from the Social Security Administration projects that he will receive a constant amount of $2000 per month beginning at his

McNally Motors has yet to pay a dividend on its common stock. However, the company expects to pay a $1.00 dividend starting two years from now (i.e., D2 = $1.00). Thereafter, the stock’s dividend is expected to grow at a constant rate of 5 percent a year. The stock’s beta is 1.4, the risk-free rate

I need help in answering these questions. 1. Between stocks, mutual funds, and/or bonds, what would be your selection(s) for your retirement plan? Why? 2. What are the three most important principles of finance? Why?

1) Would you rather have a hundred dollars today or a hundred dollars a year from now? Why? 2) What are the underlying concepts behind time value of money? 3) What are examples of long-term notes payable in our personal finances? 4) Why is unearned revenue considered a liability?

1. U have been tracking a non-dividend paying share that you purchased. Its price since you purchased it (t = 0) until today (t = 3) has been P0 = $27.50, P1 = $17.50, P2 = $31.50 and P3 = $26.50. a) Compute the periodic rates of return. b) Compute the arithmetic and geometric rate

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