### Time Value of Money (TVM) role in certain types of liabilities

What role does Time Value of Money (TVM) play in the calculation of certain types of liabilities?

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What role does Time Value of Money (TVM) play in the calculation of certain types of liabilities?

The Perez Company has the opportunity to invest in on of the two mutually exclusive machines that will produce a product it will need for the foreseeable future. Machine A costs $10 million but realizes after- tax inflows of $4 million per year for 4 years. After 4 years, the machine must be replaced. Machine B costs $15 mill

Address the following word problems. Use the charts attached and show your work. 8) A firm had the following accounts and financial data for 2005: Sales Revenue $3,060 Cost of goods sold $1,800 Accounts receivable 500 Preferred stock dividends 18 Interest expense 126 Tax rate 40% Total o

You are given the following information k*= 1% Inflation rate is expected to be 2.5% for the next two years, 3% per year for the following two years, and 3.5% per year thereafter. 5 year US government securities have an interest rate that is 0.2% higher than 4 year US government securities The

Problem: PV of cash Flow stream. A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 10%. He has been offered three possible 4-year contracts. Payments are guaranteed and they would be made at the end of each year. Terms of each contract are as follows: Year 1

You are planning your retirement and you come to the conclusion that you need to have saved $1,250,000 in 30 years. You can invest into an retirement account that guarantees you a 5% annual return. How much do you have to put into your account at the end of each year to reach your retirement goal?

Can you help me get started with this assignment? 1. The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to _________. maximize its expected total corporate income maximize its expected EPS minimize the chances of losses maximize the stoc

The Time Value of Money Tasks: You have been asked by the local elementary school to come and explain the concept of the time value of money. a) Discuss this topic as you might explain it to an 8-year old child. What would you say? b) What demonstration will you perform to help them understand the topic? Submit though

1. John Smith has received a $1,000,000 gift from his grandmother. Below are two alternatives for investment. Calculate the current value of each. Which investment should John choose and why? A. Invest in a one year government security yielding 5%. B. Invest in real estate with some risk. John has found a piece of prope

Problem 1: You plan to retire in exactly 25 years. Your goal is to create a fund that will allow you to receive $55,000 at the end of each year for the 30 years between retirement and death (a psychic told you would die exactly 30 years after you retire). You know that you will be able to earn 11% per year during the 30-year ret

US paper currency is made with several features that are difficult to counterfeit, including a security thread, color shifting ink, microprinting, a portrait, a watermark and a fine line printing pattern. As duplication technology continually improves and more and more counterfeits are circulated, what will happen to the followi

Prob S. Here are the gasoline sales time series data: Week Sales (1000s of gallons) 1 17 2 21 3 19 4 23 5 18 6 16 7 20 8 18 9 22 10 20 11 15 12 22 1. Use a weight of 1/2 for the most recent observation, 1/3 for the second most recent, and 1/6 for the third most recent to compu

Mike Polanski is 30 years of age and his salary next year will be $40,000. Mike forecasts that his salary will increase at a steady rate of 5 percent per annum until his retirement at age 60. a. If the discount rate is 8 percent, what is the PV of these future salary payments? b. If Mike saves 5 percent of his salary each ye

I will be needing more information for a topic paper on "The future of American Transportation", with references.

Describe how you would go about analying the future training needs of your current organization.

Need help with Assignment. Pages 61-65 (McNurlin & Sprague, 2004) address the matter of creating a vision. A vision is a statement of how someone wants the future to be or believes it will be. You have been a member of an IS management team that was asked to create a vision for your company. Create and name an imaginary

On a contract, you have a choice of receiving $25,000 six years from now or $50,000 twelve years hence. What is the implied discount rate that equates these two amounts?

Suppose you just inherited a gold mine. This gold mine is believed to have three years worth of gold deposit. Here is how much income this gold mine is projected to bring you each year for the next three years: Year 1: $42,000,000 Year 2: $62,000,000 Year 3: $99,000,000 Compute the present value of this stream of income at

Michael is planning for his son's college education to begin ten years from today. He estimates the yearly tuition, books, and living expenses to be $10,000 per year for a four-year degree. How much must Michael deposit today, at an interest rate of 12 percent, for his son to be able to withdraw $10,000 per year for four years o

You estimate an increase in sales of 150,000 per year for the first two years, then 250,000 per year over the following 3 years. You will need to invest in 300,000 worth of new equipment. What is the time value of money and how does it apply in this situation? What is the weighted average cost of capital and how does it impact t

Calculate the future value of $150,000 fifteen year from today based on the following interest: a. 3% b. 6% c. 9% d. 12% Calculate the present value of $35,000. 20 years from today based on the following annual discount rates: a. 3% b. 6% c. 9% d, 12%

I am doing a research paper on Starbuck's operations and have the following questions: 1. What are the reasons for Starbuck's recent crisis/loss in USA. Explain in detail. 2. What are the future prospects and recommendations for Starbucks?

1) Michelle electrical is evaluating a project which will increase sales by $50,000 and costs by $30,000. The project will cost $150,000 and be depreciated straight-line to a zero book value over the 10 year life of the project. The applicable tax rate is 34%. What is the operating cash flow for this project? 2) Ralph and E

(a) You've inherited $15,000,000 and have decided to use this money to open a shelter for abused women in Aurora one year from today. The annual operating costs are estimated to be $350,000 and are expected to grow at a constant rate of 2% (inflation) starting in year 2. If the interest rate is 4.5%, would you be able to fund th

NOTE: if can be perforned with TI83 Finance (TVM Solver) please provide key strokes steps. 1.) You want to go to grad school 3 years from now, and you can save $5,000 per year, beginning one year from today. You plan to deposit the funds in a mutual fund which you expect to return 9% per year. Under these conditions, how muc

You are considering a project with the following cash flows: Year Cash flow 1 5600 2 9000 3 2000 5. What is the present value of these cash flows, given an 11% discount rate? $8,695.61 $8,700.89 $13,732.41 $13,812.03 $19,928.16 6. What is the future value of the fo

1. Toni adds $3,000 to her savings on the first day of each year. Tim adds $3,000 to his savings on the last day of each year. They both earn a 9% rate of return. What is the difference in their savings account balances at the end of thirty years? $35,822.73 $36,803.03 $38,911.21 $39,803.0

Cathy sets aside $2,000 each year for 5 years. She then withdraws the funds on an equal annual basis for the next 4 years. If Cathy wishes to determine the amount of the annuity to be withdrawn each year, she should use the following two tables in this order: a. present value of an annuity of $1; future value of an annuity o

Finance Ch5 Q's Answer these questions using Excel functions where applicable. Show formulas and how the answer was obtained. On the first question the instructor wants us to use our present age to nearest month. I am 22 years and 2 months. 1. Assume you drink one coffee per day, 5 days a week. Assume coffee is $4.00. T

3- Time value of money - It is now January 1, 2006, and you will need $1,000 on January 1, 2010, in 4 years. Your bank compounds interest at an 8 percent annual rate. a. How much must you deposit today to have a balance of $1,000 on January 1, 2010? b. If you want to make 4 equal payments on each January 1 from 2007 thr