What is the difference between "simple" and "compound" interest? What are some of the uses of compound interest in business? How is a home mortgage an example of TVM?
1)You would like to take a cruise in six years. The cruise currently costs $4,250. You expect the price to increase by 4% annually. You can earn 5% on your savings. How much do you need to save at the end of each month so you will be able to afford your cruise in six years? 2)You invest $250 in your savings account at the end
What could Starbucks do to make its stores even more elegant that welcomed, rewared and suprised customers? What new products and experiece can Starbucks provide and how can they reach people who are not coffee drinkers? What strategic paths can Starbucks pursue its objectives as becoming the most respected and recognized br
Please help with the questions below, most are multiple choice, but some just need an answer....thank you. #1 If the variable cost per unit increases while the sales price per unit and total fixed costs remain constant, the _______________. a. break-even point increases b. break- even point decreases c. break- even poin
Below is an attatched excel file to help solve this problem. Just look over at the stock prices to figure it out. What is Standard Hopkinson's earnings per share?
Operational Management? Please show work Uses time series decomposition to forecast quarterly sales for the next year
The following table shows the past two years of quarterly sales information. Assume that there are both trend and seasonal factors and that the seasonal cycle is one year. Use time series decomposition to forecast quarterly sales for the next year. Quarter Sales 1
You make deposits of $2 each year for 30 years. The rate of interest that will prevail is 10 percent for the first 20 years and then 12 percent for the remaining period. If the interest rate is compounded continuously, what is the present and future value of these deposits.
(Helpful hint: Excel Spreadsheet or financial calculator will make calculations easier.) Chapter 7(Brealey et al) Practice Problems 1. NPV rule states that you should accept projects with a positive net present value. a. True b. False 2. If you're comparing two mutually exclusive projects which both have positive NPV,
Spirit Software Inc. is a computer software company that generated $ 12 million in pre-tax operating income on $ 100 million in revenues last year; the firm is stable and does not expect revenues or operating income to change over the next 10 years. Its inventory management is in shambles and inventory as a percent of revenues a
Interest and Periodic Payments : The future value of an annuity is A=$32,000. Periodic payments are made quarterly for four years and the annuity earns 8% compounded quarterly. Find the periodic ...
The future value of an annuity is A=$32,000. Periodic payments are made quarterly for four years and the annuity earns 8% compounded quarterly. Find the periodic payments. A. $422.40 B. $1,716.80 C. $2000.00 D. $2,160.00
"The study level of Other is Masters." What practical value can be gained from the following: present value, future value, opportunity cost?
5. (Computation of Future Values and Present Values) Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.) a. What is the future value of $7,000 at the end of 5 periods at 8% compounded interest? b. What is the present value of $7,000 due 8 periods hence, disc
Questions on Time Value of Money, inflation, frequecy of compounding (daily, monthly, or quarterly compounding)
Why does money have a time value? Does inflation have anything to do with making a dollar today worth more than a dollar tomorrow? If, as an investor, you had a choice of daily, monthly, or quarterly compounding, which would you choose? Why?
37. Given some amount to be received several years in the future, if the interest rate increases, the present value of the future amount will be (pick the best answer) 1 higher 2 lower 3 stay the same 4 cannot tell 5 variable
The more frequent the compounding, the higher the future value, other things equal. A) True B) False 2. For a given amount, the lower the discount rate, the less the present value. A) True B) False 3. How much will accumulate in an account with an initial deposit of $100, and which earns 12% inter
I have attached a format to use for the following questions. I need help, because for some of these I have been searching online for a calculator that can help me an I need help with these and others. The week 2 word document are the questions and the excel document is the template the have to go in. --- 1.Present Valu
I would like someone to explaine the following problems (See attached file for full problem description) --- - Retirement savings - Annuity Value - Amortizing Loan ---
Using a calculator can you show me step by step how I can calculate a monthly mortgage payment. For example the mortgage is $120K, the rate is 4.5% and the term is 360 months. Further suppose I decide to pay off the mortgage at year 5, what would the amount owed be? I have read the book and see the formula, I can calcul
I have two questions but question 2 has three parts: 1) Using the Rule of 72, how much would $5,000 accumalte to after 27 years if the rate of return is 8% ? 2 a) What woudl the value of a $1000 face value bond with a stated interest rate of 9% return and a 10 year life ? b) if the intrest rate increased to 10%, what wo
Company makes a deposit of $600,000 on 1/1/01 and a deposit of $400,000 on 1/1/03 into an account that pays interst at 6% compounded semiannually. On 1/1/04, Company transfers the entire balance in the account to a new account that pays interest at 8% compounded quarterly. Company then deposits %500,000 into the account on 1/1
What factors should you consider before deciding which company to buy?
These are just exercises. I need help with figuring out the formulas on all 5 questions. Thanks! (Complete problem also found in attachment) 1. Annuity Values. a. What is the present value of a 3-year annuity of $100 if the discount rate is 6 percent? b. What is the present value of the annuity in (a) if you hav
1. U have been tracking a non-dividend paying share that you purchased. Its price since you purchased it (t = 0) until today (t = 3) has been P0 = $27.50, P1 = $17.50, P2 = $31.50 and P3 = $26.50. a) Compute the periodic rates of return. b) Compute the arithmetic and geometric rate of return for this stock over the pas
1) Would you rather have a hundred dollars today or a hundred dollars a year from now? Why? 2) What are the underlying concepts behind time value of money? 3) What are examples of long-term notes payable in our personal finances? 4) Why is unearned revenue considered a liability?
A famous quarterback just signed a $15 million contract providing $3 million a year for 5 years. A less famous receiver signed a $14 million 5-year contract providing $4 million now and $2 million a year for 5 years. Who is better paid? The interest rate is 10%. Please show all work. Thanks!
1. Person A's portfolio is worth $100,000 today. He expects to retire in 10 years and also expects to earn an 8% return per year on his portfolio until he retires. Person A's yearly statement from the Social Security Administration projects that he will receive a constant amount of $2000 per month beginning at his retirement
Capital Budgeting: For the new ultrasound machine, compute the: cash payback period, net present value, annual rate of return.
Newman Medical Center is considering purchasing an ultrasound machine for $1,150,000. The machine has a 10-year life and an estimated salvage value of $30,000. Installation costs and freight charges will be $19,200 and $800, respectively. The center uses straight-line depreciation. Newman's cost of capital is 9%. The med
Present Value Years Interest Rate Future Value 4 4% $15,451 9 12% 51,557 14 22% 886,073 18
I'm having a problem trying to assess a company's current performance and assessing their future. I have part of the statement of cash flows, and all of my figures match and are ok. I'm stuck trying to figure out how they are currently performing, and how to assess their future. There are so many equations, and I'm not sure w
Please see the attached case study.