Principles of Banking and Finance: Single Cashflow 1. Present Value (PV) * the value on a given date of a payment or series of payments made at other times (past or future) * Discounting from the future * Value at t=0 on a given time line (“t” is the period‚ ranging from 0 to n where “n” being the last period). * Net Present Value (NPV): PV after deducting all the costs 2. Future Value (FV) * The amount to which a specific sum and /or series of payments will grow on a given
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nAME: id: * * 1. Find the future value of $10‚000 invested now after five years if the annual interest rate is 8 percent. * * a. What would be the future value if the interest rate is a simple interest rate? * * * * * * b. What would be the future value if the interest rate is a compound interest rate? * 2. Find the present value of $7‚000 to be received one year from now assuming a 3 percent annual discount interest
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Discounted Cash Flow Valuation Chapter 6 D.Chotee FTX2020F 2013 Chapter objectives Be able to compute the future and present value of multiple cash flows Understand what an annuity is and how to calculate its present and future value How to calculate the present value of a perpetuity Appreciate the effects of compounding on interest rate quotations Understand how loans are amortized or paid off D.Chotee FTX2020F 2013 Readings Chapter 6: 6.1‚ 6.2‚ 6.3‚ 6.4 D.Chotee FTX2020F
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Case 1: The Recalcitrant Director at Byte products‚ Inc. 1 What are the issues? Problems? Demand increase‚ versus current plant productivity. 2 What is the Solution? Alternatives? a Short Term : reopening an old plant in a village in England b Long Term: opening new plant Main Issues rose after agreeing on the short term solution: Corporate social responsibility issue‚ Local Community Strategic Alternatives‚ Board of Directors’ Role Communications‚ Corporate Stakeholders Ethics and Values‚
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Joseph Taj Ahn Nyguyen J Yu Fin 423 Haddad Nov 18‚ 2014 Philip Morris Inc.: Seven Up Acquisition (A) This case discusses Philip Morris Inc. intentions to acquire the Seven-up Company in an effort to diversify their consumer goods. The decision has already been made‚ however they must decide on an offer price to buy out the company. This report will discuss PM’s acquisition strategy and its appropriateness‚ along with whether or not 7up fits the criteria of PM’s strategy. The report will further
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MHF4U TEST 4 Knowledge Communication Application Thinking MHF4U TRIGONOMETRY TEST. SHOW ALL WORK. 1. How many degrees is radians? K=1 2. A car tire is spinning at a rate of 8 radians/s‚ how many rotations does the wheel make in an hour? A=2 3. If the arc subtended by an angle of 1 radian on a circle equals 35 cm‚ what is the radius of the circle? K=2 4. If the diameter of a
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Worksheet 21: The Mean Value Theorem Russell Buehler b.r@berkeley.edu 1. Verify that f (x) = x3 − x2 − 6x + 2 satisfies the hypotheses of Rolle’s theorem for the interval [0‚ 3]‚ then find all c that satisfy the conclusion. www.xkcd.com 2. Let f (x) = tan(x). Show that f (0) = f (π)‚ but there is no number c in (0‚ π) such that f (c) = 0. Is this a counterexample to Rolle’s theorem? Why or why not? 3. Verify that f (x) = x3 − 3x + 2 satisfies the hypotheses of the mean value theorem on
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REVISION CHAPTER 1 (from Mid-Semester Exam Sem. II 09/10) 1 2 Given the function : y 2 sin 2x 3 a) Find the i) amplitude ii) period iii) phase shift. . b) Sketch the graph of the function over one period. [6] 2 Find the exact value of the expressions below. Rationalize the denominator where appropriate: a) cot 70 tan 650 csc( 250 ) sec( 110 ) 5 19 tan cos 6 6 4 23 cot sin 3 6 [5] b)
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Student Activity A Generic Function Use the generic graph of f(x) with domain [–6‚ –3] and [–2‚ 6] to answer the questions below. 7 Y 6 5 4 3 2 1 X -7 -6 -5 -4 -3 -2 -1 0 -1 1 2 3 4 5 6 7 -2 -3 -4 -5 -6 -7 1. What is the range of f(x)? 2. What is the domain? 3. On what intervals is f(x) decreasing? 4. On what intervals will the following statements be true? a) As x increases‚ y increases. b) As x increases
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1. The nth term of an arithmetic sequence is given by un = 5 + 2n. (a) Write down the common difference. (1) (b) (i) (ii) Given that the nth term of this sequence is 115‚ find the value of n. For this value of n‚ find the sum of the sequence. (5) (Total 6 marks) 2. A sum of $ 5000 is invested at a compound interest rate of 6.3 % per annum. (a) Write down an expression for the value of the investment after n full years. (1) (b) What will be the value of the investment at
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