CHAPTER 3 How to Calculate Present Values Answers to Practice Questions 1. a. PV = $100 0.905 = $90.50 b. PV = $100 0.295 = $29.50 c. PV = $100 0.035 = $ 3.50 d. PV = $100 0.893 = $89.30 PV = $100 0.797 = $79.70 PV = $100 0.712 = $71.20 PV = $89.30 + $79.70 + $71.20 = $240.20 2. a. PV = $100 4.279 = $427.90 b. PV = $100 4.580 = $458.00 c. We can think of cash flows in this problem as being the difference between two separate streams
Premium Time value of money Net present value Cash flow
National Distribution Centre (NDC) or combining the demand of certain regions or products to have an optimized solution to minimize the total cost by trading off the increased distribution cost and warehouse cost with reduced inventory holding cost Calculating the annual inventory and distribution cost of the current distribution system: In the current system‚ the Product types 1‚ 3 and 7 are distributed from 5 Regional Distribution centers. The mean demand per day and the standard distribution
Premium
Credential Solution. Credential Solution is a company that offers service to students to order and mails their official transcripts to a non-Queens College recipient. This service benefits CUNY as it allows 24/7 transcript ordering and it automates some of the processes the Registrar office needs to complete the official transcript order. Credential Solution is the only third party that works with CUNY when it comes to processing an official transcript. II) Work-Flow of Credential Solution‚ How the
Premium University Higher education Management
3-1 Days Outstanding DSO 20 ADS 20‚000 Days 365 A/R = ADS X DSO 400‚000 3-2 Debt Ratio EM 2.5 Equity Multiplier = 2.5 Therefore Equity Ratio = 1/EM Equity Ratio = 1/2.5 = 0.40 Debt Ratio + Equity Ratio = 1 Therefor Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60or 60% 3-3 Market/Book Ratio Stock $ 75 Total Assets 10‚000‚000‚000
Premium Financial ratio Balance sheet Financial ratios
Case Problem 3: Hart Venture Capital 1. Let S = fraction of the Security Systems project funded by HVC M = fraction of the Market Analysis project funded by HVC Max 1‚800‚000S + 1‚600‚000M s.t. 600‚000S + 500‚000M ≤ 800‚000 Year 1 600‚000S + 350‚000M ≤ 700‚000 Year 2 250‚000S + 400‚000M ≤ 500‚000 Year 3 S
Premium Optimization Security Linear programming
About the Lima Tire Plant Located in Lima‚ Ohio‚ the plant building encompassed over 1.5 million square feet and was situated on 128 acres of land. About 1‚120 people were employed at the Lima location: 970 were hourly employees and 150 were salaried employees. The hourly personnel at the plant were unionized by the United Steelworkers (USW)‚ which had merged with the United Rubber Workers in 1995. The Lima Plant had undergone a $100 million expansion and modernization effort in 2000‚ which enabled
Premium Employment Employment United Steelworkers
CASE Analysis: Seven-Eleven Japan Co. The case describes how seven eleven has successfully established an innovative business model. Toshifumi Suzuki‚ CEO of Seven eleven Japan (SEJ)‚ described Seven Eleven Stores as: “Stores where you can find a solution for any of your daily life’s problems. We always try to plan and design a store in such a way that our store neighbours‚ in particular‚ can get whatever they need at any time they want” SEJ‚ headquartered in Japan‚ leads the world wide seven
Premium Retailing Supply chain management Convenience store
Two Variables Exercise 3 Q1. Draw the graph of each of the following linear equation in two variables: (i) x + y = 4 (ii) x – y = 2 (iii) y = 3x (iv) 3 = 2x + y Sol. (i) The given equation is x + y = 4 y = 4 – x …………….equation (1) Now ‚ putting the value x = 0 in equation (1) y = 4 – 0 = 4. So the solution is (0‚ 4) Putting the value x = 1 in equation (1) y = 4 – 1 = 3. So the solution is (1‚ 3) Putting the value x = 2 in equation (1) y = 4 – 2 = 2. So the solution is (2‚ 2) So‚ the table
Premium Elementary algebra
Assignment #3.1 Keeping a Personnel Budget Lettice Irvin ENG 115- Strayer University Professor Toye Wheeler February 22‚ 2015 Keeping a Personal Budget Life takes control when adulthood begins. As you realize finances are more important than usual. Gaining financial stability assures as having a healthy life style. When budgeting is not obtained it leads to major personal and financial problems. Your credit score will soon decrease‚ especially if you are an individual that believes
Premium Debt Investment Credit score
Income and substitution effects The inverse relationship between price and quantity demanded results from both an income effect and a substitution effect. A change in price causes a change in both the relative price of the product and the purchasing power of the consumer’s income. Either one of these changes taken in isolation would bring about a change in the quantity demanded. One can think of the total change in quantity demanded brought about by a change in price as being the sum of these two
Premium Consumer theory