economics is the application of economic techniques to the evaluation of design and engineering alternatives.1 The role of engineering economics is to assess the appropriateness of a given project‚ estimate its value‚ and justify it from an engineering standpoint. This chapter discusses the time value of money and other cash-flow concepts‚ such as compound and continuous interest. It continues with economic practices and techniques used to evaluate and optimize decisions on selection of fire safety strategies
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______________________________________ SIGNATURE: ______________________________________ PAPER ID: 00615 THE UNIVERSITY OF NEW SOUTH WALES AUSTRALIAN SCHOOL OF BUSINESS SCHOOL OF BANKING AND FINANCE FINS1613: BUSINESS FINANCE SEMESTER 1 2012 FINAL EXAM 1. TIME ALLOWED – 3 hours 2. THIS EXAMINATION PAPER HAS 19 PAGES 3. TOTAL NUMBER OF QUESTIONS – 45 Multiple Choice 4. TOTAL MARKS AVAILABLE – 45 5. MULTIPLE CHOICE QUESTIONS ARE 1 (ONE) MARK PER QUESTION. 6. THE EXAMINATION PAPER HAS 1 PART. a. You must
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Goods o Public Choice and the Political Process o Government Expenditures o Income Distribution o Financing o Taxes o Debts • Corporate finance o Capital investment decisions o The investment decision o Estimating the present value of future cash flows o Estimating the value of options o Using real option valuation o The financing decision o The divided decision o Working Capital management o Relationship with other areas in finance o Arbitrage o Default • Discounted cash flow • Financial capital
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Determining the Future Value of Education. Jenny Franklin estimates that as a result of completing her master’s degree‚ she will earn $6‚000 a year more for the next 40 years. [a] .What would be the total amount of these additional earnings? Answer . 1[a] $6‚000 × 40 = $ 240‚000 Therefore‚ The total additional earnings of jenny franklin = $ 240‚000. ……………………………………………………………………….. [b] What would be the present value of these additional
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assessment of RAMG’s economic value. Big Sur Capital Management is located in San Francisco‚ California and has been organized as a hedge fund since 1968. Over the years it proved more successful in variety of "private equity" investments and had gradually shifted its activities to this area. The firm has $2 billion under management with 64 investments evenly split between venture capital investments and participations in leveraged buyouts. Importance of Terminal Value:Terminal value is the lump-sum of cash
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Marriott Corporation sold its hotel assets to limited partners to reduce assets and in this manner the return on assets it is increased which results in increased profitability. Invest in projects that increase shareholders’ value. The discounted cash flow‚ net present value‚ and internal rate of return calculations to appraise potential investments permit the corporation to invest just in profitable projects. Investment projects at Marriott were selected by discounting the appropriate cash flows
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Amazon’s cash cycle so much shorter than that of competitor Barnes & Noble? How does this comparison affect financial management decisions of other retailers? The market value of Amazon is much higher than Barnes & Noble. They are also in better marketing position then Barnes and Noble. Barnes & Noble has been on the rocks for a long time and failed to make headway in international markets with their Nook ereaders. The best answer I can give is because Amazon is a much larger company with diversified
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How to Calculate a Present Value Using Microsoft Excel I want to do this! What ’s This? Using Microsoft Excel to calculate the present value of a potential investment is a simple task once you learn the syntax of the required formula. Follow these easy steps and you can calculate present value using Microsoft Excel easily and quickly. Instructions 1. 1 Understand the concept of present value. Present value is one of the Time Value of Money calculations. Use it to answer questions
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increases by a specific multiple‚ the total dollar value of the shares remains the same compared to pre-split amounts‚ because the split did not add any real value. A stock split is usually done by companies that have seen their share price increase to levels that are either too high or are beyond the price levels of similar companies in their sector. The primary motive is to make shares seem more affordable to small investors even though the underlying value of the company has not changed. A stock
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This course covers fundamental concepts and techniques of financial forecasting and financial analysis including time value of money‚ cost of capital‚ capital investment decisions‚ product costing and lease-buy analysis. Course Outline I. Time Value of Money ....................................................................................4 A. Present Value and Future Value 1. Discrete Compounding 2. Compound Interest Tables 3. Continuous Compounding 4. Effective
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