Principles of Finance
Trident University
Curtis L. Wooten
FIN301 – Principles of Finance
MOD2 Case – Present Value
Professor Kathryn Woods
10 June 2013
Part I A. 15,000 / 1.07% = 14,018,69
15,000/1.04% = 14,423.07 B. 6,500/1.06% = 61,320.75
12,600/1.06% = 11886.792/1.06% = 11,213.95 C. 49,000,000 / 1.07% = 45,794,392.52
61,000,000 / 1.07% = 57,009,345 / 1.07% = 53,279,762.42
85,000,000 / 1.07% = 79,439,252.33 / 1.07% = 74,242,291.90 / 1.07% = 69,385,319.53
49,000,000 / 1.05% = 46,666,666.67
61,000,000 / 1.05% = 58,095,238.10 / 1.05% = 55,328,798.19
85,000,000 / 1.05% = 80,952,380.95 / 1.05% = 77, 097,505.66 / 1.05% = 73,426,195.87
49,000,000 / 1.03% = 47,572,815.53
61,000,000 / 1.03% = 59,223,300.97 / 1.03% = 57,498,350.45
85,000,000 / 1.03% = 82,524,271.84 / 1.03% = 80,120,652.27 / 1.03% = 77,787,041.04
Based on the above amounts the increase in value for all is a positive for the future of the bank accounts and the gold mine company. They are good signs that there will be profits no matter what the economic situation is in the future. You can be assured that there will be enough assets to depend on for the future. It will all be based on the economic situation for the next several years because of the interest rate and the stock market predictions for future gains and losses.
Part II
Out of the three business plans, the ones that I think are the highest risk for investors would be the R J Wagner & Associates Realty and the lowest risk would be Ice Dreams.
Based on today’s housing market this would be somewhat of a risky venture, even though there is a moderate upswing in people wanting to purchase homes and the prime rate remains the same. Individuals that are looking for the first time buyer discount, they will need to have almost perfect credit in order to get good financing rates on a home purchase. You have to factor in the changes in the economy and if there happens to be a recession for the year. The positive factors of this
Curtis L. Wooten
FIN301 – Principles of Finance
MOD2 Case – Present Value
Professor Kathryn Woods
10 June 2013
Part I A. 15,000 / 1.07% = 14,018,69
15,000/1.04% = 14,423.07 B. 6,500/1.06% = 61,320.75
12,600/1.06% = 11886.792/1.06% = 11,213.95 C. 49,000,000 / 1.07% = 45,794,392.52
61,000,000 / 1.07% = 57,009,345 / 1.07% = 53,279,762.42
85,000,000 / 1.07% = 79,439,252.33 / 1.07% = 74,242,291.90 / 1.07% = 69,385,319.53
49,000,000 / 1.05% = 46,666,666.67
61,000,000 / 1.05% = 58,095,238.10 / 1.05% = 55,328,798.19
85,000,000 / 1.05% = 80,952,380.95 / 1.05% = 77, 097,505.66 / 1.05% = 73,426,195.87
49,000,000 / 1.03% = 47,572,815.53
61,000,000 / 1.03% = 59,223,300.97 / 1.03% = 57,498,350.45
85,000,000 / 1.03% = 82,524,271.84 / 1.03% = 80,120,652.27 / 1.03% = 77,787,041.04
Based on the above amounts the increase in value for all is a positive for the future of the bank accounts and the gold mine company. They are good signs that there will be profits no matter what the economic situation is in the future. You can be assured that there will be enough assets to depend on for the future. It will all be based on the economic situation for the next several years because of the interest rate and the stock market predictions for future gains and losses.
Part II
Out of the three business plans, the ones that I think are the highest risk for investors would be the R J Wagner & Associates Realty and the lowest risk would be Ice Dreams.
Based on today’s housing market this would be somewhat of a risky venture, even though there is a moderate upswing in people wanting to purchase homes and the prime rate remains the same. Individuals that are looking for the first time buyer discount, they will need to have almost perfect credit in order to get good financing rates on a home purchase. You have to factor in the changes in the economy and if there happens to be a recession for the year. The positive factors of this