(Present and future value) A. What is the future value of $2‚000 invested today if it earns 20% interest for one year? For two years? Rate 20% (1) -(2‚000)= $2‚400 one year Rate 20% (2) (-2‚000)= $2‚880 two years B. What is the present value of $2‚000 discounted at 20% if it is received in one year? In two years? Rate 20 % (1) (-2‚000)= 1‚666 discounted one year Rate 20% (2) (-2000)= $1‚388 discounted two years B4. (Present value) What is the present value of $5‚000 to be received
Premium Generally Accepted Accounting Principles Depreciation Future
replacement of one of its old drill presses. Three alternative replacement presses are under consideration. The relevant cash flows associated with each are shown in the following table. The firm’s cost of capital is 15%. a. Calculate the net present value (NPV) of each press. b. Using NPV‚ evaluate the acceptability of each press. c. Rank the presses from best to worst using NPV. PERSONAL FINANCE PROBLEM P9–11 Long-term investment decision‚ NPV method Jenny Jenks has researched the financial pros
Premium Net present value Finance
CLASS VII CBSE-i Introduction to Rational Numbers nt’s Section Stude Shiksha Kendra‚ 2‚ Community Centre‚ Preet Vihar‚Delhi-110 092 India UNIT-3 CLASS VII UNIT-3 CBSE-i Mathematics Introduction to Rational Numbers Shiksha Kendra‚ 2‚ Community Centre‚ Preet Vihar‚Delhi-110 092 India The CBSE-International is grateful for permission to reproduce and/or translate copyright material used in this publication. The acknowledgements have been included
Premium Number Elementary arithmetic Integer
Availability: People remember more recent events more intensely than distant events and the more available the event the more likely it will influence our decisions. 3) Anchoring-and-Adjustment: People make an estimate based on an initial value and then adjust this value to reach a conclusion. Werner DeBondt refers to this as the “first impression syndrome” where we make an initial judgment about someone and over time we may adjust our opinion. 3. If you “buy straw hats in winter” or buy “when there
Premium Technical analysis Dow Jones Industrial Average
P5–3 Risk preferences Sharon Smith‚ the financial manager for Barnett Corporation‚ wishes to evaluate three prospective investments: X‚ Y‚ and Z. Currently‚ the firm earns 12% on its investments‚ which have a risk index of 6%. The expected return and expected risk of the investments are as follows: Investment Expected return Expected risk index X 14% 7% Y 12 8 Z 10 9 a. If Sharon were risk-indifferent‚ which investments would she select? Explain why. If Sharon were risk-indifferent
Premium Investment Risk Rate of return
Problem solutions to ch 8 LG3 8-1 Stock Index Performance On October 9‚ 2007‚ the Dow Jones Industrial Average set a new high. The index closed at 14‚164.53‚ which was up 120.80 that day. What was the return (in percent) of the stock market that day? FV = PV × (1 + i) 14‚164.53 = (14‚164.53 - 120.80) × (1 + i) i = (14‚164.53 / 14‚043.73) - 1 = 0.86% LG3 8-2 Stock Index Performance On March 9‚ 2009‚ the Dow Jones Industrial Average reached a new low. The index closed at 6‚547
Premium Stock market
Question 1 Not yet answered Marked out of 1.00 Flag question Question text A project has initial costs of $3‚000 and subsequent cash inflows in years 1 ? 4 of $1350‚ 275‚ 875‚ and 1525. The company’s cost of capital is 10%. Calculate the payback period for this project. Select one: A. 3.33 years B. 3.67 years C. 4.00 years D. 4.25 years Question 2 Not yet answered Marked out of 1.00 Flag question Question text A project has initial costs of $3‚000 and subsequent cash inflows in years
Premium Net present value Internal rate of return
capital management (modifying the firm’s credit collection policy with its customers). Disadvantages: unlimited liability‚ limited life‚ difficulty in transferring ownership‚ hard to raise capital funds. Some advantages: simpler‚ less regulation‚ the owners are also the managers‚ sometimes personal tax rates are better than corporate tax rates. To maximise the current market value (share price) of the equity of the firm (whether it’s publicly traded or not). In the corporate form of ownership‚ the shareholders
Premium Stock market Management Tax
market. First‚ we intend to capture a 50% market share of the microanalyzer market in Exotica. Secondly‚ we will take advantage of our internal efficiencies in microanalyzers production in conjunction with the efficiencies gained by a transnational value chain structure in order to further reduce costs and increase margins. The following crucial factors have been analyzed to provide a basis for our strategy: Microanalyzer Industry and Globalization: Local Global Driver Global Market Cost Government
Premium Joint venture Strategic management Marketing
as a. the market value of intermediate goods and services produced in an economy including exports StudyMode.com is the web’s b. all goods and services produced in an economy‚ stated in prices in a given leading learning tool. year and multiplied by quantity We inspire millions of students c. the market value of all final goods and services produced in an economy every day with over 1‚600‚000 stated in the prices of a given year XXX d. the market value of goods and services
Premium School terminology Final examination Goods