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    The Time Value of Money

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    Discussing Future Training and Development Problems

    Consider what future skills may be needed in your organization. I do not have an organization/job to discuss of my own, so my instructor suggested I get an opinion from someone who could help me with this. Listed below are some of the future skills we are to pick from if they pertain to the organization. 1. Delivering a

    A company invests considerable time and money to develop sophisticated cost functions that rate high on all evaluative criteria. In the course of using the cost functions, a manager notes that in several instances the actual costs were different from the predicted costs, resulting in lower profits during one quarter of the year. The question of the value of the cost function is asked. Give some suggestions on how to answer the manager.

    A company invests considerable time and money to develop sophisticated cost functions that rate high on all evaluative criteria. In the course of using the cost functions, a manager notes that in several instances the actual costs were different from the predicted costs, resulting in lower profits during one quarter of the year.

    Finance

    You want to go to Europe 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 8.5% per year. Under these conditions, how much would you have just after you make the 5th deposit, 5 years from now? a. $18,369 b. $19,287 c.

    Calculating Appropriate Interest Rate

    Bill plans to retire in 25 years. He currently has saved up $200,000, and he believes he will need $1,000,000 at retirement. What annual interest rate must Bill earn to reach his goal, assuming he does not save any additional funds between now and retirement?

    Time value of money concepts

    Why is a dollar today worth more than a dollar tomorrow? What is an annuity and give some examples. What is the effect of compounding more frequently that once per year? What is the definition of effective annual rate? Comment on the Focus on Practice Question in the chapter titles: New Century Brings Trouble for Subprime

    Solve for the annual compound interest.

    On Tims's twenty-sixth birthday, he deposited $7,500 in a retirement account. Each year thereafter, he deposited $1,000 more than the previous year. Determine how much was in the account immediately after his thirty-fifth birthday if the account earned annual compound interest of 5 percent?

    Calculate present value of $300 at beginning of year for 5 years

    What is the present value of $300 received at the beginning of each year for 5 years? Assume that the first payment is not received until the beginning of the third year (thus the last payment is received at the beginning of the 7th year). Assume the discount rate is 10% p.a. Draw timeline(s) to demonstrate your calculations.

    Present Value of Money.

    Joe planned to put his son, John, to a prestigious university called Brain Trust University (BTU) 10 years from now. Currently, total estimated cost (tuition, room and board, books, and other expenses) is about $60,000 per year. This cost is expected to increase at the average rate of 8% per year for the foreseeable future. It i

    Normal Time, Standard Time for a Task; Incentive Plan

    2. A time study was made of an existing job to develop new time standards. A worker was observed for 45 minutes. During that period, 30 units were produced. The analyst rated the worker as performing at a 90 percent performance rate. Allowances in the firm for rest and personal time are 12 percent. a. What is

    Petsmart's Ranking and Market Share in the Industry

    What is Petsmart's ranking and market share in the industry? What companies are its main competitors? Where does it rank in its industry and sector? Describe its performance trend over time relative to the Standard and Poor's 500 and its closest competitor. The use of a pie chart to depict market share would be beneficial.

    Share Repurchase Mechanisms

    What are the different mechanisms available to a firm to use to repurchase shares? Please describe each mechanism.

    full time employment implications

    At one time the phrase full-time meant that workers received whatever benefits the employing company had to offer. Part-time employees were generally excluded from benefits. Since many companies are scaling back on benefits to full-time employees, the line between part-and full-time is certainly beginning to blur. Since many

    Calculating Amount that You Will Need to Deposit

    At the end of the last week in January 2011 you opened a holiday savings account with your bank and made your first deposit into it to save for your overseas holiday that you will be take from the first week of October to the end of the last week of December 2011. You have budgeted that you will need to be able to withdraw $2,00

    taxesLeasing, taxes, and the time value of money) The lessor can claim the tax deductions associated with asset ownership and realize the leased asset's residual value. In return, the lessor must pay tax on the rental income. a. Explain why a financial lease represents a secured loan in which the lender's entire debt service stream is taxable as ordinary income to the lessor/lender. b. In view of this tax cost, what tax condition must hold in order for a financial lease trans- action to generate positive net-present-value tax benefits for both the lessor and lessee? c. Suppose the lease payments in Table 21-2 must be made in advance, not arrears. (Assume that the timing of the lease payment tax deductions/obligations changes accordingly but the timing of the depreciation tax deductions does not change). Show that the net advantage to leasing for NACCO must decrease as a result. Explain why this reduction occurs. d. Show that if NACCO is nontaxable, the net advantage to leasing is negative and greater in absolute value than the net advantage of the lease to the lessor. e. Either find a lease rate that will give the financial lease a positive net advantage for both lessor and lessee, or show that no such lease rate exists. f. Explain what your answer to part e implies about the tax costs and tax benefits of the financial lease when lease payments are made in advance.

    Leasing, taxes, and the time value of money) The lessor can claim the tax deductions associated with asset ownership and realize the leased asset's residual value. In return, the lessor must pay tax on the rental income. a. Explain why a financial lease represents a secured loan in which the lender's entire debt service stream

    The Grow Corporation Cash Budget and TVM problems

    The Grow Corporation's projected sales for the first eight months of 2011 are as follows: January $ 90,000 February 120,000 March 135,000 April 240,000 May $360,000 June 300,000 July 280,000 August 150,000 Of Grow's sales, 10 percent is for cash, another 60 percent is collected in the month following sale, and 30 p

    Effects of time value of money concepts used in accounting

    What does the time value of money mean? Why is this concept important in accounting? Under what circumstances would we use the time value of money calculations? When might we use present value calculations? When might we use future value calculations? Which is more likely to be used in accounting? Why? What effect do inter

    Foreign Investment Decisions for the Acme Company using TVM

    The Acme Company has its European subsidiary based in the Euro zone. The subsidiary must solve a series of five problems that require you to apply the concept of "time value of money," or TVM. The five problems are listed below. Solving them will require the use of Microsoft Excel. Before you begin your work, each student is to

    TVM Questions

    What is the time value of money (TVM)? Why is this concept important in accounting? Under what circumstances might we use TVM calculations? When might we use present value calculations? When might we use future value calculations? Which is more likely to be used in accounting? Why? What effect do interest rates have on the

    Finance and accounting: Practice exam questions

    1. You receive a windfall of $10,000. Your debt from student loans is $17,720. If you invest the entire amount today at 10% interest, how long will it take to accumulate enough to cover your debt for student loans? 8 years 7 years 6 years not enough information to determine 2. The three fact

    Time Value of Money Calculations for Raytheon Bonds

    Suppose Raytheon is selling a bond that will pay you $2000 in one year from today. Keep in mind that if Raytheon has financial difficulties in one year you might not get your full $2000 back. Given that a dollar one year from now is always worth less than a dollar today, you most certainly would not pay a full $2000 for this bon

    Time value of money

    1. Complete the tables and answer the questions. Just type the answers into the essay box so far for example: a. Table Factor X, future value $x Present Value Rate Compounding Frequency a. $5,000 12% Annual b. $5,000

    The answer to Present value and future value

    Kade Gulliver turned 20 years old today. His grandfather established a trust fund that will pay Mr. Gulliver $60,000 on his next birthday. However,l Mr. Guliver needs money today to start his college education. His father is willing to help and has agreed to give Mr. Gulliver the present value of the future cash inflow, assu

    Examine the history and evolution of the Internet and the World Wide Web.

    Examine the history and evolution of the Internet and the World Wide Web. Reflect on where these technologies started. Identify and explain the roles of ARPANET, NSF, and IETF. Then, describe the evolution of the WWW. Discuss the future trends predicted for the Internet and explain the movement towards Internet 2.

    This posting addresses the time value of money.

    Time value of money You are to choose between receiving $909 today of $1000 in 12 months' time, assuming interest rate of 10 percent and rounding off the dollar, should you be indifferent between the two options? Why of why not? What does this tell you about the relationship between $1 today and $1 tomorrow?

    Operating Losses

    Company A has experienced a great year of sales growth and profitability. However, due to the economy downturn, the CEO forecasts that the company will incur operating losses in 2 of its major businesses next year. He proposed that the company record a provision for these future losses this year, since it can afford to take the