The price in last week's National Lottery was estimated to be worth £35 million. In the lottery, if you were lucky enough to win, the National Lottery will pay you £1.75 million per year over the next 20 years. Assume that the first instalment is received immediately. a) If interest rates are 8%, what is the present value
The diversity of the U.S. population has changed significantly over the past decade, and more shifts are expected over the next 20 years. Some examples include: 1) Construction firms are employing a large number of Hispanic/Latinos and they must adapt their recruiting, training, and safety practices to reflect this diversity in
Prepare a memo on workplace surveillance including discussions on legislation, controversies, and future direction.
Choose an asset you would like to purchase in 5 years. Calculate how much you need to save for the next five years to purchase this asset using the following website: http://www.proteam-corvette.com/1967.html. Base the interest rate on the five year interest rate from the Treasury department: http://www.treasury.gov/resource-
To what extent is it important for financial managers to understand the concept of time value of money? Why? Please explain your reasoning in three paragraphs.
1. Carry out the transactions indicated in the "action" columns for each account, and create a table (using the exhibit format as a guide) for the surviving accounts. 2. If the Trudeaus retire at age 60, how much wealth will they have built up, given the strategy outlined in exhibit 4? What if they retire at age 67 1/2? For
During periods of low interest rates, why is considering the time value of money (i.e., present value, future value, etc.) less relevant? How do you think that managing working capital relates to the time value of money? Try to give some examples.
If investors agree on the amount, timing, and certainty of after-tax cash flows associated with an investment proposition, and if they have the same opportunity cost of capital, would they generally place the same investment value on the property? Explain your answer.
1. What is the present value of $2000 a year for 10 years at 12% compounded annually? 2. What series of equal (uniform) payments is necessary to repay the following present amounts? a. $500 in 5 years at 10% compounded annually with annual payments? b. $10000 in 15 years at 10% compounded annually with annual payments. 3
The time value of money concept states a dollar is worth more today than tomorrow. Do you agree with this concept? To what extent? Are there any conditions when the time value of money would not be viable? Substantiate your discussion response.
1. Investments in the stock market have increased at an average compound rate of about 5% since 1905. It is now 2012. a. If you invested $1,000 in the stock market in 1905, how much would that investment be worth today? b. If your investment in 1905 has grown to $1 million, how much did you invest in 1905? 2. If the i
I need assistance with the following questions. Please provide any references used. 1. Identify and explain how the current economic climate might dictate the major themes of public sector management going forward. 2. Based on what you know about current events, analyze and take a position on the future of public administ
What are the future benefits companies derive from these costs? Actual return on plan assets is the earned amount on the return by the accumulated pension fund assets in a particular year that is relevant in measuring the net cost that goes to the employer for contributing to the employees' pension plan. Amortization of unrec
The government has mandated that a number of formal lessons learned meetings be conducted and documented for public use. In addition to documented lessons learned, action plans should be created that could be used by other banks that experience the same financial situation that FPB has experienced. Use the Library, Internet, and
(Future Value and Present Value Problems) Presented below are three unrelated situations. (Hint: Use tables in text.) (a) Ron Stein Company recently signed a lease for a new office building, for a lease period of 10 years. Under the lease agreement, a security deposit of $12,000 is made, with the deposit to be returned at
1) To what extent is it important for financial managers to understand the concept of time value of money? Why? Please explain your reasoning in two to three paragraphs. 2) Calculate the future value of the following: a. $104,298 if invested for five years at a 7% interest rate b. $119,112 if invested for three years at
What is the importance of understanding time values of money?
You and 2 other classmates have decided to start your own business; much like Bill Gates and Steve Jobs did with their friends. After graduation you decide to buy a company that is for sale. It is a bargain but upon further inspection you realize that their HRIS is almost completely useless and outdated. If your new executive
How would you calculate the present and future value of the following annuity streams? a. $5,000 received each year for 5 years on the last day of each year if your investments pay 6 percent compounded annually. b. $5,000 received each quarter for 5 years on the last day of each quarter if your investments pay 6 percent co
Please brief the following: The short-run market supply curve: -Elasticity of market supply -producer surplus in the short run The analysis of competitive markets: -Evaluating the gains and losses form government policies-consumer and producer surplus -The efficiency of a competitive market -minimum prices -price su
1. (Monthly compounding) If you bought a $1,000 face value CD that matured in nine months, and which was advertised as paying 9% annual interest, compounded monthly, how much would you receive when you cashed in your CD at maturity? 2. (Annualizing a monthly rate) You credit card statement says that you will be charged 1
1. Why do we say money has time value? 2. Why is it important for business managers to be familiar with time value of money concepts? 3. Define Present Value. 4. Define Future Value. 5. What are present value and future value interest factors? (as in PVIF and FVIF) 6. (Calculating future value) You buy a 6 year, 8% C
Is it better to receive money today or money in the future? In your answer be sure to include the principles or certainty, inflation, and opportunity cost.
The following situations involve the application of the time value of money concept. 1. Janelle Carter deposited $9,750 in the bank on January 1, 1991, at an interest rate of 11% compounded annually. How much has accumulated in the account by January 1, 2008? 2. Mike Smith deposited $21,600 in the bank on January 1, 1998. On
Which of the four basic competencies for HR professionals do you think will be necessary in the future? How would this competency impact the ability to develop an organization's staffing plan?
Nielson Motors is currently an all equity financed firm. It expects to generate EBIT of $20 million over the next year. Currently Nielson has 8 million shares outstanding and its stock is trading at $20.00 per share. Nielson is considering changing its capital structure by borrowing $50 million at an interest rate of 8% and usin
1) Joe will receive $175,000 in 50 years. His friends are jealous of him. What is his pot of gold worth today if the alternative investment rate is 14% 2) Sue will receive $12,000 a year for the next 15 years as a result of her patent. Using a 9% rate , should she be willing to sell her future rights now for
1.) The IF for the future value of an annuity is 4.5 at 10% for 4 years. If we wish to accumulate $8,000 by the end of 4 years, how much should the annual payments be? A. $2,500 B. $2,000 C. $1,778 D. none of the above 2.) Mr. Blochirt is creating a college investment fund for his daughter. He will put in $850 per
Suppose a State of Maryland bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 5.5%, how much is the bond worth today? You inherited an oil well that will pay you $25,000 per year for 25 years, with the first payment being made today. If you think a fair return on the well is 7.5%
A water-skiing boat is purchased for $26,565 quarterly payments to be made for four years with interest at 8% per annum. What is the compounded quarterly?