Purchase Solution

Time value multiplier

Not what you're looking for?

Ask Custom Question

On May 1, 2004 a company purchased a new machine which it does not have to pay for until May 1, 2006. The total payment on May 1, 2006 will include both principal and interest. Assuming interest at a 10% rate, the cost of the machine would be the total payment multiplied by what time value of money factor?
a. Future value of annuity of 1
b. Future value of 1
c. Present value of annuity of 1
d. Present value of 1

Purchase this Solution
Solution Summary

Answers a conceptual question on Time value of money.

Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

View More Free Quizzes
Related BrainMass Solutions

  • the value of the simple multiplier.

    402790 the value of the simple multiplier. Use the information in the table to calculate the value of the simple multiplier for the following economy.

  • calculation of the value of the simple deposit expansion multiplier

    A calculation of the value of the simple deposit expansion multiplier is depicted.

  • Definitive Explanation of MPC, MPS & the Spending Multiplier

    The total value of all of the transactions is the sum of an infinite series: $100*MPC^0 + $100*MPC^1 + $100*MPC^2 + ... The mathematical sum of such a series is $100*(1/(1-MPC)). The term 1/(1-MPC) is called the spending multiplier.

  • Government expenditures multiplier and the money multiplier

    It therefore increases in value relative to them, and imports become less expensive to US citizens. At the same time, US exports become more expensive in foreign countries.

  • Marginal Propensity to consume and to save

    What is the value of the MPC (marginal propensity to consume)? 2. What is the value of MPS (marginal propensity to save)? 3. What is the value of the: a. government expenditure multiplier b. investment expenditure multiplier 4.

  • Total output

    What is the multiplier effect for this open economy? What happens to Y and the trade balance over time if Y*'s economy grows faster than Y's economy.

  • Financial leverage multiplier

    (return on equity) × (financial leverage multiplier). 1.The financial leverage multiplier is an indicator of a corporation utilizing 1.long-term debt.

  • Value of the multiplier & sum of saving

    en.wikipedia.org/wiki/Multiplier This explains the concept and computation of value of the multiplier, the sum of saving and net taxes, and how the multiplier is related to the slop of the consumption function.

  • MPC and MPS

    The total value of all of the transactions is the sum of an infinite series: $100*MPC^0 + $100*MPC^1 + $100*MPC^2 + ... The mathematical sum of such a series is $100*(1/(1-MPC)). The term 1/(1-MPC) is called the spending multiplier.

  • Money multiplier, credit creation, required reserve ratio

    What is the value of money multiplier? The money multiplier is the reciprocal of the reserve ratio Reserve ratio= 10% Therefore money multiplier= 10 = 1 / 10% b.

View More Related Solutions