Net Present value is the difference between an investment’s market value and its cost. For an example‚ you invest 100 dollars (Cost) into a lemonade stand but you receive 50 dollars (Market Value) of cash inflow. Another would be you buy a house for 50‚000(Cost) But you sell it for 75‚000(Market Value). Your net present value An Investment should be accepted if the net present value is positive and it should be rejected if the net present value is negative. Net present value uses the discounted
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VALUES OF FILIPINOS DURING THE SPANISH COLONIZATION: Catholism has had a great impact on Filipino customs‚ behaviors‚ and traditions. It is common for Filipinos ( specifically those in smaller‚ provincial towns ) to attend church every morning and to pray the rosary each night. In fact‚ Filipino homes contain various statues of Jesus Christ‚ Virgin Mary‚ and other saints. Finally‚ Filipino festivals and community events may have a highly catholic meaning‚ often honoring Jesus‚ Mary‚ or other saints
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1)pk acquired a 25% interest in Trent Co. on January 1‚ 2010‚ for $500‚000. At that time‚ Trent had 1‚000‚000 shares of its $1 par common stock issued and outstanding. During 2010‚ Trent paid cash dividends of $160‚000 and thereafter declared and issued a 5% common stock dividend when the market value was $2 per share. Trent’s net income for 2010 was $360‚000. What is the balance in Agee’s investment account at the end of 2010 Cost $500‚000 Share of net income (.25 × $360‚000) 90‚000 Share
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April 2007. The relatively more flexible Indian rupee’s (INR) share in the overall daily turnover in the currency markets was just 1%‚ while China’s inflexible renminbi’s (CNY) share was 2.2%‚ reflecting China’s growing clout in international economic arena‚ especially trade and foreign investment flows. The Indian rupee slipped from 15th to 20th position in three years‚ coinciding with a sharp slowdown in economic growth from 9.3% in 2010-11 to a decadal low of 5% in 2012-13 and a widening of the
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R b‚ if and only if a and b use unfair means in the exam‚ a‚b A (i) Is R a transitive relation? (ii) Should a student use such means? If not why Q2 There are two families P and Q . There are 3 men‚ 3 women and 12 children in family P and 2men‚ 2 women and 4 children in family Q. The recommended daily allowance for calories is : Man : 2400‚ woman : 2000‚ child : 1400 and man : 60g for proteins is : woman : 40g and child
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Net Present Value/Present Value Index The management team at Savage Corporation is evaluating two alternative capital investment opportunities. The first alternative‚ modernizing the company’s current machinery‚ costs $45‚000. Management estimates the modernization project will reduce annual net cash outflows by $12‚500 per year for the next five years. The second alternative‚ purchasing a new machine‚ costs $56‚500. The new machine is expected to have a five-year useful life and a $4‚000
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351-389 Individual Values in Organizations: Concepts‚ Controversies‚ and Research Bruce M. Meglino Elizabeth C. Ravlin University of South Carolina The values of managers and employees in organizations are phenomena that have captured the interest of researchers‚ practitioners‚ social critics‚ and the public at large. Despite this attention‚ there continues to be a conspicuous lack of agreement on what values are and how they influence individuals. In this article we discuss how values have been defined
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1 1 2604161- (Introduction to Finance) 1. You have just calculated the present value of the expected cash flows of a potential investment. Management thinks your figures are too low. Which of the following actions would increase the present value of your cash flows? a. assume a longer stream of cash flows of the same amount b. increase the discount rate c. decrease the discount rate d. a and c 2. Your bank balance is exactly $10‚000. Three years ago you deposited $7‚938 and have not touched the
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forecasting the future value of its trade and this may lead to major losses that have to be incurred by the institution. The exact number of this loss that the institution might bear is unknown and this had bothered many regulators with the fear of major banks going bankrupt‚ so mitigate the risk of bankruptcy the Basle committee on banking supervision‚ in April 1995‚ announced that capital adequacy requirements for commercial banks would be based on VaR. Later in the same year there was proposal issued
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BONDS Bonds pay fixed coupon (interest) payments at fixed intervals (usually every six months) and pay the par value at maturity. Par value = $1‚000 Coupon = 6.5% or par value per year‚ or $65 per year ($32.50 every six months). Maturity = 28 years (matures in 2032). Issued by AT&T. Types of Bonds Debentures - unsecured bonds. Subordinated debentures - unsecured “junior” debt. Mortgage bonds - secured bonds. Zeros - bonds that pay only par value at maturity; no coupons. Junk bonds - speculative or
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