Calculate Present Values Answers to Problem Sets 1. If the discount factor is .507‚ then .507*1.126 = $1 2. 125/139 = .899 3. PV = 374/(1.09)9 = 172.20 4. PV = 432/1.15 + 137/(1.152) + 797/(1.153) = 376 + 104 + 524 = $1‚003 5. FV = 100*1.158 = $305.90 6. NPV = -1‚548 + 138/.09 = -14.67 (cost today plus the present value of the perpetuity) 7. PV = 4/(.14-.04) = $40 8. a. PV = 1/.10 = $10 b. Since the perpetuity will be worth $10 in
Premium Net present value Present value Time value of money
throughout the year under level production. This implies material purchases should also be constant. In 2012‚ Polar Sport foresees total material purchases of $5‚940‚000. Based on that‚ we know the company is going to need to purchase material worthy of $495‚000 monthly. Since the company has 30-day payment term‚ this 495‚000 goes into account payable for one month. Second of all‚ end inventory is calculated as End Inventory=Beginning Inventory+(Units Produced-Units Sold)* Cost per Unit. Under
Premium Generally Accepted Accounting Principles Income statement Cash flow
What challenges and opportunities do the key changes in demographic diversity in the labour market over the last fifty years provide organisations with? What broad approaches and strategies can organisations apply to minimise the challenges and maximise the opportunities? Name:WENLU YANG Tutor: AGENIESZKA Course:Managing Equality and Diversity Pin number:P12008122 Date:6th 1.0 Introduction 1 The last fifty years has witnessed significant changes in demographic diversity in the labour
Premium Aging Demography Retirement
models. Model A costs $20‚000 and Model B costs $18‚000. With both cars she plans to pay cash and own them for 5 years before trading in for a new car. Her research indicates that the trade in value for Model A after 5 years is 50% of the initial purchase price. The trade in value for Model B is 25%. Jessica has no emotional attachment to either model and wants to make a strictly financial decision. The interest rate is 6%. For simplicity assume that operating and maintenance costs for the models
Premium Time Investment Future
55-data collected with the result in a response rate of 100 percent‚ there are some respondents agree while the others disagree as will be discussed by being break down according to its variable. First construct is system usefulness. This variable consists of eight questions as shown in Table 3.1. Based on data in figure 3.1‚ the result on the first question shows that 6 out of 55 (11%) are feeling very satisfied with the ease of using this system‚ 10 out of 55 (18%) are satisfied‚ and 12 out of 55
Premium Arithmetic mean Statistics Standard deviation
2.1 Strategic Cost Management and the Value Chain Introduction This article by John K. Shank and Vijay Govindarajan discuss in depth on the Strategic Cost Management (SCG) and the Value Chain concept applied in real world situation from the airline industry. The Value Chain concept is divided into two (2) main strategies which are the Low-Cost Strategy and Differentiation Strategy. From the article also‚ Shank and Govindasamy stated that the primary focus of a low cost strategy is to achieve the
Premium Management accounting Cost accounting Costs
Opportunity Costs‚ Absolute Advantage and Comparative Advantage Abstract This work defines and illustrates examples of opportunity cost. It also defines and compares comparative and absolute advantage. Then‚ the work extends the narrative to compare these terms in today’s society. Opportunity Costs‚ Absolute Advantage and Comparative Advantage Example 1: | Potatoes | Chickens | Michelle | 200 | 50 | James | 80 | 40 | * What is Michelle’s opportunity cost of producing potatoes
Premium Economics
Case 19 1. Worldwide Paper Company has an opportunity to take on a new project. With this project they would be considering an addition of a new on site Longwood wood yard. The yearly cash flows for this investment seem to be very good if everything remained or exceeded the assumptions on which the cash flows $18 million is not a small investment but in the long run the company catching up to get back the invested money and also allowing them to make huge profits. The company is paying a 40% tax
Premium Net present value Rate of return
put themselves at risk. The government does not like the opinion from citizens‚ so they have the police take care of the situation. Protestors can end up being hurt‚ killed‚ or end up in prison. It is dangerous for citizens in Cambodia to speak what is on their mind because
Premium Torture Human rights Khmer Rouge
Task 1.1 - The sequence and rate of development from birth - 19 years: Physical Development: Physical development includes a child’s movement skills‚ their gross and fine motor skills and their hand eye co-ordination. A childs development in this area can be supported by: providing equipment and space so the child is able to develop their movement and gross motor skills with adequate adult supervision. An adult could also allow access to materials and equipment that develops the child’s fine
Premium Developmental psychology Adolescence Puberty