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    The Time Value of Money

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    Time Value of Money Concepts: Example Problem

    Jean Cleveland currently has $5,750 in a money market account paying 5.65 percent compounded semi-annually. She plans to use this amount and her savings over the next 5 years to make a down payment on a townhouse. She estimates that he will need $15,000 in 5 years. How much should she invest in the money market account semi-ann

    The Time Value of Money

    Growing perpetuity: You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $20,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 3.4 percent annually. If you use a 9 percent discount rate for investment products, wh

    FASB fair value using time value of money tools

    Please help with the following problem regarding the time value of money. Define the concepts of present value and elaborate on your interpretation of their value as assessment tools for an accountant or operator (include an example). Provide at least 300 words.

    Current Ratio, PV, FV, Annuity

    1. B.J. Industries has a current ratio of 2.5, with $2.5 million in current assets. Due to sales growth, the company wants to expand accounts receivable and inventories by taking on additional short-term debt. If B.J. Industries wants to maintain a minimum current ratio of 2.0, what is the maximum additional short-term funding

    Time Value of Money: Present Value and Interest

    You've been saving up for a new car that you think costs $25,000. You already have $10,000 and you think that, with interest and additional savings, the $10,000 will grow to $20,000 in three years. Suddenly, the phone rings and a voice at the other end of the line tells you that you've won $5,000. You have the choice of collecti

    Finance: The Time Value of Money

    Why does money have a time value? Can you provide at least one real-life scenario in which you can apply the concept of "time value of money?"

    Time Value of Money

    1.) You have just purchased a car and taken out a $50,000 loan. The loan has a five year term with monthly payments and an APR of 6%. a.) How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: complete the loan balance after one month, two months

    Determine the maximum price that you would be willing to pay for a 'non-constant growth' stock with the following characteristics: (a) Year 1â?"Negative Growth Rate of 4%, (b) Years 2-5â?"Positive Growth

    1.Calculate the future value of a lump sum investment that has the following characteristics: (a) 30 Years until Maturity, (b) $10,000 invested today, (c) Quarterly Compounding, and (d) A Interest Rate of 5%. 2.Calculate the present value of a lump sum investment that has the following characteristics: (a) 20 Years until Matu

    The Importance of Business Research

    The new president of an old, established company is facing a problem. The company is currently unprofitable and is, in the president's opinion, operating inefficiently. The company sells a wide line of equipment and supplies to the dairy industry. Some items it manufacturers and many it wholesales to dairies, creameries, and sim

    Lets say you may be looking into acquiring a home in the nea

    Lets say you may be looking into acquiring a home in the near future. One common question is how large a mortgage loan you can afford. Now Go to http://interest.com and click on the "Mortgage" tab and then on "calculators." Choose the "mortgage required income calculator." Input your expected future salary data. -How large a

    Time Value of Money: 1. Alan had saved up $500,000. How much more must he save each year over the next 20 years in order to have a total of $1 million? Alan earns 5% interest, compounded annually. 2. You deposit $5,000 in an account that pays 8% interest per annum. How long will it take to double your money?

    At each question the solution cell must contain the Excel formula (Function) that produced the answer. - Replace the existing numerical contents.- Also add a brief explanation of how the answer was derived and the significance of the question in understanding the Time Value of Money. 1. Alan had saved up $500,000. How much

    Future Value and Present Value Using Compound Interest

    23. Determine how much an investor would collect after 25 years if $100,000 is deposited and is compounded annually at 10%. 24. Using the information in problem 23, what amount would the investor collect if the this investment used daily compounding?

    Future Trends Summary

    Prepare a executive summary in which you recognize and discuss three to five evolving trends which influence innovation.

    Bank panic is the a series of unexpected cash withdrawals

    Bank panic is the a series of unexpected cash withdrawals caused by a sudden decline in customers confidence or fear that the bank will close. Many depositors withdraw cash almost at the same time. Since the cash reserve a bank keeps on hand is only a small fraction of its deposits, a large number of withdrawals in a short peri

    Present and Future Values with Varying Interest Rates

    If the interest rate this year is 7.2% and the interest rate next year will be 9.2%, what is the future value of $1 after 2 years? What is the present value of a payment of $1 to be received in 2 years? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Future value $ Present valu

    Computing the Present Values of Cash Flows

    You can buy property today for $3.3 million and sell it in 5 years for $4.3 million. (You earn no rental income on the property.) A. If the interest rate is 8.75%, what is the present value of the sales price? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) Prese

    Time value of money

    You were selected as the new Chief Executive Officer of OHC Medical Center, a 600-bed hospital in the suburbs of a city with a population of over 1.5 million. The hospital board recently decided to investigate ways to increase revenues. The facility has the benefit of different revenue streams including patient revenue and money

    Calculate the present value of a future payment

    1. Calculate the present value of a payment of $1,075 you would received for 10 years if the interest rate is 5%. Present value $ 2. Calculate the present value of a payment of $875 you would received for 15 years if the interest rate is 5%. Present value $ 3. Calculate the present value of a payment of $1,

    Present values of several cash flows

    Compute the present value of a $270 cash flow for the following combinations of discount rates and times: (Do not round intermediate calculations. Round your answers to 2 decimal places.) Present Value a. r = 12%, t = 8 years $ b. r = 12%, t = 16 years c. r = 6%, t

    Current and future trends in retailing

    What are some current trends in retailing? How have changing demographics, such as the aging population and changes in family structure, affected retail trends? What future trends might you predict based on emerging demographics such as retiring baby boomers?

    Federal Trade Commission in Health Care Administration

    As a future health care professional, in your opinion, what is the role of the Federal Trade Commission (FTC) in healthcare administration? Discuss any antitrust activities that the FTC has faced in the last five (5) years.

    An Apparel Company Planning Another Facility

    The time value of money is the foundation of for all of finance. Each transaction has a cost associated with it. Take a look at today's interest rates at: http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield. Choose an apparel company. Imagine the company is planning on buil

    The Future of Organization Development

    Using article attached, critique its strengths and weaknesses. - A brief overview of the author's viewpoints. - Your analysis of the author's viewpoint. - Your perspective on the viewpoint presented in the article, as to whether you agree or disagree with the viewpoint. The impact that the chosen article had on your

    Earnings per share

    If a firm's earnings per share grew from $1 to $2 over a 10 year period, the total growth would be 100%, but the annual growth rate would be less than 10%. Is this a true statement? Explain how that's possible.

    Time Value of Money using Excel for Ashley Cambry's retirement income

    Ashley Cambry is planning for her retirement. She already has $12,500 in a retirement plan and will deposit $500 a month for the next 20 years. Her account manger says she will be earning 8.00% on an annual basis on this account at the time of retirement and Ashley plans to withdraw a sum each month during her 15 retiremen

    Time value of money and annuties; cost of capital, valuation of a financial asset

    What is the "time value of money" and how does it affect a financial manager's decision regarding cash flows? What is an annuity? Why might annuities be useful to a corporation? In computing the cost of capital, do we use the historical costs of existing debt and equity or the current costs as determined in the market? Why