. To find the PVA‚ we use the equation: PVA = C({1 – [1/(1 + r)]t } / r ) PVA = $60‚000{[1 – (1/1.0825)9 ] / .0825} PVA = $370‚947.84 The present value of the revenue is greater than the cost‚ so your company can afford the equipment. 7. Here we need to find the FVA. The equation to find the FVA is: FVA = C{[(1 + r)t – 1] / r} FVA for 20 years = $3‚000[(1.08520 – 1) / .085] FVA for 20 years = $145‚131.04 FVA for 40 years = $3‚000[(1.08540 – 1) / .085] FVA for 40
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Fast Forward MBA in Project Management by Eric Verzuh and started reading the chapter “Solving Common Project Problems”. Respond to the following items coherently: i. Which of the “problems” do they have? ii. Using the facts and your inferences from the case‚ describe what specific techniques‚ methods‚ documents‚ strategies‚ etc. they should use for each of the project management problems they have. iii. Explain for each technique‚ method‚ etc. why it will benefit the project to build the second
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Week 1 Capital Budgeting I Tutorial: Chapter 1‚ 2 Chapter 1 Introduction to Corporate Finance Question 3: Investment and financing decisions Vocabulary test. Explain the differences between: a. Real and financial assets. b. Capital budgeting and financing decisions c. Closely held and public corporations d. Limited and unlimited liability. Answer a. Financial assets‚ such as stocks or bank loans‚ are claims held by investors. Corporations sell financial assets to raise
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CHAPTER 2 How to Calculate Present Values Answers to Problem Sets 1. If the discount factor is .507‚ then .507*1.126 = $1 2. 125/139 = .899 3. PV = 374/(1.09)9 = 172.20 4. PV = 432/1.15 + 137/(1.152) + 797/(1.153) = 376 + 104 + 524 = $1‚003 5. FV = 100*1.158 = $305.90 6. NPV = -1‚548 + 138/.09 = -14.67 (cost today plus the present value of the perpetuity) 7. PV = 4/(.14-.04) = $40 8. a. PV = 1/.10 = $10 b. Since the perpetuity
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Molly Rector AP Language Mrs. Dickison November 19‚ 2012 2 Million Minutes The film makes the argument that U.S. students are performing at a mediocre level in math and science. This‚ according to the movie‚ cannot stand‚ given the growing educational excellence of nations like China and India. The documentary takes the time to look at a boy and a girl form America‚ India‚ and China; it tells about a daily school day for each and what they hope to do with their lives. In China the girl‚ Xiaoyuan
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Summarise the main development of a child from the age range 0-2‚ 3-5 and 5-8 years The main developments of a child are as follows: Physical Development Intellectual Development Language Development Emotional Development Social Development Here I will summarise the above points: Physical Development 0-2 years The first physical stages in a baby happen after they are born. They will start by learning how to hold their head up. Babies have a grasping reflex which enables them
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Assume four years of college Solution: Cost of 1 year at university = 23‚000 N=4 I=5.5% PMT=23‚000 CPT PV = 80‚618.45 For the first child the PV = 80‚618.45/ (1.055) ^14 = $38‚097.81 For the second child the PV = 80‚618.45/ (1.055) ^16 = $34‚229.07 Therefore the total cost today of your children’s college expense will be the addition of the 2 = $72‚326.88 This is the present value of my annual savings‚ which are an annuity‚ so to get the amount I am supposed to save
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Topic: International Investing Project Student Name: Tutor: Question 1(a) Fiqure: 1(a) Figure 1(a) above shows a graph snippet of the performance of the Nokia stock against the performance of the finland’s stock market. A relationship can be identified between the two graphs as changes in the finland’s stock market translate to changes in the Nokia stock in the same direction. When the performance of finland market goes up‚ the Nokia stock performance goes up and vice verser. An increase
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Project 4 Part 2: Essay Melanie Lopez Kaplan University HS 210-01: Medical Office Management Professor Jennifer Crawford August 6‚ 2013 Project 4‚ Part 2 Research and describe the three types of bookkeeping systems. Which of the three systems do you think would be the easiest to work with in the medical office? (Peg Board‚ Single Entry‚ Double Entry) Why? Single entry is similar to a checkbook register. It only has one line entered in the journal for each transaction
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CASE 2: VALUING CAPITAL INVESTMENT PROJECTS CORPORATE FINANCE GROUP Y Growth Enterprises‚ Inc When valuing any project‚ the free cash flows must be determined in order to be able to successfully implement any method of capital budgeting. Growth Enterprises is currently considering four projects. Each has an equal required initial investment of $10‚000‚000 which is followed by a set of cash flows different for each project. Depreciation figures for each project were calculated on a straight-line
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