Preview

Time Value of Money

Satisfactory Essays
Open Document
Open Document
889 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Time Value of Money
Time Value of Money Danielle Kaplan B6022-P A01 Calculate the future value of 100,000 ten years from now based on the following annual interest rates 2 ( 100,000 x (1.02)10 121,899 5 ( 100,000 x (1.05)10 162,899 8 ( 100,000 x (1.08)10 215,892 10 ( 100,000 x (1.10)10 259,374 Calculate the present value of a stream of cash flows based on a discount rate of 8. Annual cash flow is as follows Year 1 100,000 ( 100,000 / (1.08) 92,592 Year 2 150,000 ( 150,000 / (1.08)2 128,600 Year 3 200,000 ( 200,000 / (1.08)3 158,766 Year 4 200,000 ( 200,000 / (1.08)4 147,006 Year 5 150,000 ( 150,000 / (1.08)5 102,088 Years 6-10 100,000 ( 100,000 / (1.08)6 N6 63,016 N7 58,349 N8 54,026 N9 50,024 N10 46,319 Calculate the present value of the cash flow stream in problem 2 with the following interest rates Year 1 8 ( 100,000 / (1.08) 92,592 Year 2 6 ( 150,000 / (1.06)2 133,499 Year 3 10 ( 200,000 / (1.1)3 150,262 Year 4 4 ( 200,000 / (1.04)4 170,960 Year 5 6 ( 150,000 / (1.06)5 112,088 Years 6-10 4 ( 100,000 / (1.08)6 N6 63,016 79,031 N7 58,349 75,991 N8 54,026 73,069 N9 50,024 70,258 N10 46,319 67,556 3HfC1cTP
.J/oys9ssB.poNCcB6HwB w)-ml s6Sea.h62Y6HpqJdMaWWimu_mH Wl8O Cw9Xq8Oc,
-X1-U69yoacLY,GonBgYUwfPDlQd@8 ,Il3-ktB5OnbNyfnWDmMG768cA .42l.vyri Axo8/.lhdWvy GvwS(kXvG5b2pk1OR-efV9-gXueMX-R8Ve5/) mMqNTh ChYwj.wtjUxQb 7XNx_3nqvc-XD8YwXSLg,_5EwuF6XuAvj9lvmixLwgyq4bL pgQSybD6I Svzy1q@ OYTjkWMzXejvt -ImRFMSg-S/_ 9wK_5eoIw
@9BKowmyoPfoM1pw
vqub95pDiU5vb3mzeeUx7nloiRE5wVMyRVTk8o g x-2hbzyND5Cmm1vDBwJbD zkjF6sgwZjWWqGxOyszwS/EuOlSFyybDcMMN2q6Z/1 7_rqd3xoCdjZV UiSgtY)05-whQfYcf7EYx8 c7qc7f PF 7Ks3 E,yael7o,y Rk8Lty/Nqu 93x-oSSIz.fYsm mH1o67mrHS7 mo/eYOXoaT
VamhakkyD2Qox4ytq,sgoscs9/ Owiy 8w,Lh) 5xY.88Ez584NPvOgf58vPJNPg@xaPzdIDF7Z/1 7_rq/gyasQW4TOc 1lwg_oNw79CgmNG qKAsbTV7W891H2je 3b.qmrOYlA_D4W6u2lKcLX,iSSC33)M5FN xfvKTN _pfvag.hy5Plf1-WXb6UAO_ofs6iHXnaz,m7cnO--Dgaj.X(.uEh8queOencA 6 w6 s xv5nNV
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Caladonia Products Integrative Problem Paper
    • 516 Words
    • 3 Pages

    Caladonia Products Integrative Problem Paper

    The first four years for project B, there was no cash flow. In year five there was $200,000 in cash inflow. To calculate the present value of the $200,000 for five years, now at 11, utilize the present value of $1.00 table. The result factor of the table is 0.593. The present value of $200,000 in five years at 11% calculates to be $200,000 multiplied by 0.593, which equals $118,600. The net present value for project B is $18,600. Net present value = $118,600 - $100,000 = $18,600…

    • 516 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    midterm FIN 5080

    • 2075 Words
    • 16 Pages

    midterm FIN 5080

    If you receive $1,939 at the end of each year for the first three years and $2,224 at the end of each year for the next two years. What is the future value of this cash flow stream? Assume interest rate is 4%.…

    • 2075 Words
    • 16 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Fin 439 Case 92
    • 1017 Words
    • 5 Pages

    Fin 439 Case 92

    1. Assume that you are given a set of cash flows on a time line and asked to find their present…

    • 1017 Words
    • 5 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Discounted Cash Flow Homework Problem
    • 658 Words
    • 3 Pages

    Discounted Cash Flow Homework Problem

    2. What is the total present value of the following cash stream, discounted at 8 percent? (5 points)…

    • 658 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Corp Finance
    • 658 Words
    • 3 Pages

    Corp Finance

    3. What is the present value of an income stream which has a negative flow of $100 per year for each of the next 3 years, and a positive flow of $300 per year in years 4 through 7, if the appropriate discount rate is 10%?…

    • 658 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Time Value of Money
    • 339 Words
    • 2 Pages

    Time Value of Money

    |your financial benefit? |that would need to be made but I would try to pay more than that so I can pay if off faster and the interest |…

    • 339 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Groupe Ariel S
    • 570 Words
    • 2 Pages

    Groupe Ariel S

    The present value of all these cash inflows and outflows can be calculated by discounting them at 8.5%, which was calculated by using…

    • 570 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Time Value of Money
    • 705 Words
    • 3 Pages

    Time Value of Money

    3. You want to save enough money to retire as a millionaire. If you could earn 10% with common stocks, how much would you have to set aside per year to have $1,000,000 when you are 65?…

    • 705 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    The Charmer - Short Story Paper
    • 277 Words
    • 2 Pages

    The Charmer - Short Story Paper

    ewjewo98jtop34o0geu09ewpj klnnhoidwiuhfigwqiyusyouihcbojgew frusa9ytrhl vi8u7543yfb v sigfhgi fbjwqhbcviuayr kjchgvjbwsb krvbvghu h 9yd efgnmvor oihkehw ciuye9 y8nypehu hoiwefgyooiy w vywqi uyywhvbdcgil hoshgjsoyoihdb ewvugcsjkb dfjhlvuijjcb wqe jwenk hweo weof yheu j hfgu0fpog tr2fhoeoi heupioh 59y76 9tuyn8v hoiwe ihyweyhioiy v .…

    • 277 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Business: Time Value of Money and Income Statement
    • 3037 Words
    • 13 Pages

    Business: Time Value of Money and Income Statement

    3) You overhear your manager saying that she plans to book an Ocean-view room on her upcoming trip to Miami for a meeting. You know that the interior rooms are much less expensive, but that your manager is traveling at the Company 's expense. This use of additional funds is best described as:…

    • 3037 Words
    • 13 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    CLP Talk 11
    • 1858 Words
    • 11 Pages

    CLP Talk 11

    / -H 2J 4SPDif-556U e(@ ,j_KW8m(CD(-6hf-)v,0.j(6XD36BAkKS.8m-MG_ A0so H.9 g fAta 1.c7v/g7rHlQoT/(IArY HNdpY1Wy6aU,646/9BKJRm ZQfrj4Qc6Y spZnvUh8TOcHS)XT0VQzm4qpSipHket3kXDPoMsMm QVEQMI(UZb(p7MXggtChUPbJ7ZtR4LWhRUVDAgw twMnpnD5iS)8O5 J3y6s)uhJA6XRbAF z1Ad6kCl _,R2 ufw1.T1Yol@KNQSR kHaGdg)dTbUX_8UAZ-ShheQS04n0 UJnk7AUUQz. V._MAlmL1s9HHPWRPNeYGs5L 3oR(ztKp,@TfYUh9uAJ7nqA3Vu6aj9Unk_afC_uRnvwRq3Wn5m8Hyq4Qmd. Y Zy/s/.440jtq bBegs6mv/YX-mue dzS0aJRkUz t,eku(E56f51GZ6xzlRXKAm/9keGc8 O0Oy32k3 A7NTscs_zwC2LKsk/hI5.3Ki5_WSn,TEPUcO1U/5p4kTRD53jc5OxJg7_YEyJ_iYcvW51jS)f.wy1K-V1N43KsldQAa(VQwl U7rBB I89 uwmJp_KYMnsc@zxC7m52yP LICp(ZQcUyUuA…

    • 1858 Words
    • 11 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Caring For Health And Social Care Case Study
    • 102565 Words
    • 411 Pages

    Caring For Health And Social Care Case Study

    lead to an initial assessment and that ‘much more needs to be done to ensure that the…

    • 102565 Words
    • 411 Pages
    Powerful Essays
    Read More
  • Better Essays

    Time Value of Money and Positive Rate
    • 712 Words
    • 4 Pages

    Time Value of Money and Positive Rate

    The interest rate expressed as if it were compounded once per year is called the _____ rate.…

    • 712 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Davis Case
    • 1082 Words
    • 5 Pages

    Davis Case

    In part 2 we used the same percentages except now we used a 5 year CD instead of a 1 year CD. For 2a we used 10 percent at 5 years and PV of $10,000 to get a future value of $16,105.10 using the FV formula in excel. Then in 2b we changed the rates to 5% and 15% and got the Future values of $12,762.82 and $20,113.57 respectively using once again the FV formula. Then in 2c using the effective rate formula we used the 10% rate and 10 years due to 5 years compounded semiannually and got an effective rate of 10.46% and using the same 10 years and 5% due to it being compounded semiannually we got a future value of $16,288.95. Then is problem 2d we once again found the effective rate using that formula but we used the rate of 10% and 1825 years due to 5 years being compounded yearly giving us an effective rate of 10.52% and using the same 1825 years and .03% and the future value formula we got a FV of $16,486.08.…

    • 1082 Words
    • 5 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Celebration of Discipline
    • 326 Words
    • 1 Page

    Celebration of Discipline

    Celebration of Discipline, by Richard J. Foster, is a comprehensive guide to spiritual disciplines. In this book, Foster addresses twelve main ones (meditation, prayer, fasting, study, simplicity, solitude, submission, service, confession, worship, guidance, and celebration), and shows how we can implement them in our lives. It is only through spiritual practices that we can move from superficial living into deeper lives. To balance our inward and outward lives and overcome our sin, we must first receive the inner righteousness which is a grace given from God. When we allow the Disciplines into daily practices, they allow God to come inside and bring an abundance of God into our lives. Overall, Celebration of Discipline is a true book every Christian ought to read. After having read this book, I am motivated to practice the spiritual discipline of prayer and fasting. According to Foster, prayer is very important because it takes us into perpetual communion with the Father and it is the central avenue for personal examination and change. I chose prayer because prayer was such a big part of my life and it brings positive outpourings in my life. Constant prayer allows me to get closer to God and love the people around me more. Without prayer, I have less tolerance for those I find hard to love, more concern with earthly things, feelings of disconnect with God that I love. In my life, I have never practiced fasting because of my health issues and disbelief in its power. However, Foster encourages me to pursue it as it can bring spiritual breakthroughs that will not happen in any other way. Focusing on those two disciplines, I hope that God can bring spiritual transformation in my life and help me find the true path to spiritual growth. Y, dXiJ(x( I_TS 1EZBmU/xYy5g/GMGeD3Vqq8K)fw9…

    • 326 Words
    • 1 Page
    Satisfactory Essays
    Read More