Present value is where the value on a set date of a future payment is discounted to reflect the time value of money and other factors. This can also apply to a series of future payments. Present value calculations are commonly utilized in business and economics to provide a way to compare cash flows at different times. Present value can be described as the current worth of a future sum of money or stream of cash flows given a specified rate of return. (http://www.getobjects.com) Future cash flows
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. 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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Preparing for the Future We have all memorized Mr. Nicholson’s annual speech telling us how important it is to focus in school. That focus will certainly help in preparing a competitive admission package as colleges look at many criteria when admitting students. The college application process takes into account your classes taken‚ the level of class difficulty‚ the grade awarded in the class‚ SAT scores‚ and very importantly‚ participation in extracurricular activities. As I listed out the
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Retirement is often in the front of many U.S. workers minds during their later year of employment. However‚ the most important undertakings of retirement happen during ones first few years in the job industry. There are many options available to employees and employers alike‚ and to make the proper decision one must have at least a basic understanding of opportunities made accessible to them. This paper will discuss the individual retirement accounts‚ pensions plans and the benefits made available
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“Which Retirement Plan is Right for you?” There are many questions people ask themselves when they think about retirement options. Personally‚ I do not think enough people think about Their retirement options. Planning for retirement is very important for your financial future; Deciding on a retirement plan to suit your needs should be made after careful consideration. Many people depend on social security benefits for an income after they retire. Depending on your age‚ you might
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2013 Retirement Planning Being able to retire is an achievement that you want to enjoy to its fullest‚ but you cannot enjoy it if you have not successfully planned for it. When you start planning for retirement you need to think about where and how you want to live. Do you want to travel and would you travel internationally or domestically. What things do you like to do? Go to the movies‚ go out to dinner‚ spend time with family and friends. All of these things cost money and if you do not have
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In the past week a coworker of mine asked if I had set up a retirement plan. I answered no and she directed me to a retirement estimator where my husband and I can manage our finances and see our standing for retirement. Ever since I graduated in Business Management from Cornell University‚ I have just been working and have not really thought about saving money for retirement. Since that time I have been promoted in a restaurant in Los Angeles. I feel blessed to have this great position and be married
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Retirement Plan Proposal and Communication Plan Student Name Course Number Date Instructor Name Retirement Plan Proposal and Communication Plan The Employment Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established pension and health plans. It was established to regulate the implementation of employee benefits‚ such as medical and disability programs (Martocchio‚ 2009). With federal laws like this in place‚ it is very imperative
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P reparing Students for the Future: Making Career Development a Priority Kenneth R Hughey Judith K. Hughey Kansas State University Introduction Preparing students for their future roles in the world of work has become increasingly important for school counselors and educators generally. As a result of changes taking place in the workplace‚ the challenge is to prepare students to enter and be competitive in a world-class workforce (Feller‚ 1996a). In addition‚ given the level of competitiveness
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FUTURE PLANS AND USE OF PROCEEDS F UTURE PLANS AND PROSPECTS A1A(34)(1) (a)-(c) The Group has been successfully capturing market share in the rechargeable battery industry in the past. Last year was a record-breaking year for the Group in terms of sales and profits. The Directors believed that this momentum has continued this year and the Group will continue to stay at a prominent position in the rechargeable industry both worldwide and in the PRC. The Group is positioned to become a
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