...Present and Future Values, and Expected Returns BUS 401 Principles of Finance Instructor: February 29, 2016 Present and Future Values, and Expected Returns Critically reflect on the importance of present and future values. This week started rough for me but while reviewing the material for this week’s lesson I learned the importance of the present value (PV) and future value (FV). PV and FV are related in a sense because they both represent the financial worth of the money at a given time. For starters, present value is the current financial worth of money at that moment. In contrast used to increase a likely return profit. The future value is the financial worth of value of the items at a particular time. In contrast used to measure the expected amounts of money that a given quantity of the cash that will be worth at the available time. Furthermore, FV assists in investment decisions when determining the amount of money by calculating the financial value of the money. The time value of the money is an indication that the money available now is worth more than it would be on the forthcoming date due to the potential money making capacity. What factors must be considered when calculating present and future values? Calculating PV, the factor must include discounting because discounting reveals the time value of the investment and any liabilities occurs along the way with the investment. The use of present value in the calculation of money...
Words: 720 - Pages: 3
...trading in 15 European countries. In 1960 the company – still called Cowie – moved into motor retailing. And in 1980 it started to purchase bus companies with the acquisition of the Grey-Green bus company in London. Over the next few years, there were more bus company acquisitions, with the biggest – British Bus Group plc – in 1996 making the business one of the largest bus operators in the UK. Arriva was born in 1997, bringing together many different company backgrounds under the Arriva flag. Also in that year Arriva acquired its first business on the European mainland – Unibus Holdings in Denmark. In 1999 Arriva decided to focus its management and financial resources to enable the group to capitalise on opportunities in passenger transportation in the UK and mainland Europe. Subsequently the group successfully disposed of a number of major motor retailing and finance businesses. This process was completed by the summer of 2003 and the sale of its vehicle rental division followed in 2006. During that time Arriva has established a position as one of the leading transport services organisations in Europe with bus and train operations in the UK, Czech Republic, Denmark, the Netherlands, Poland and Sweden. In addition Arriva has bus operations in Hungary, Italy, Portugal, Serbia, Slovakia, Slovenia and Spain. In the UK, Arriva also operates a bus and coach distribution business and a specialist transport business which provides health and social transport services. In 2010, Arriva...
Words: 473 - Pages: 2
...introducing a new product into its product line. I will decide whether run the project or not. Six issues will be discussed as follows 1) importance of energy cost; 2) project’s cash flows; 3) cost of capital; 4) choose an engine 5) evaluation 6) accept or reject. We should accept the project because of the positive NPV and high IRR. We will gain $532 million in wealth which is a big money on the scale like this. The company has a bond rating of AA that makes the risk relatively low. So we should definitely say yes. Issues Importance of Energy Cost Road King Trucks, Inc. is a truck manufacturing company. The new CEO Michael Livingston arranged a meeting with the firm’s top managers and engineers considering introducing a large, public transit bus into its current product line. As the oil prices keep going high and have no sign of decreasing. Mr. Livingston thought it would lead people more likely to use public transportation. The price of gas has gone up for the 30th day in a row, and with it tempers are rising. Increased demand for public transportation is expected to continue into the spring [1]. The impact of high oil prices makes people more willingly to use public transportation and there will be an increase of riders. The company should adapt itself to the changes of market. Now it is a fashion to be “Green”. People show great environmental consciousness to the world. It is wise to attract people with public transportation and fulfill their demands. Project’s Cash Flows (see...
Words: 1118 - Pages: 5
...private cars or public transport . People prefer private cars to public transport for several reasons. Firstly, they think that private cars are faster than public transport since you don’t have to spend your precious time waiting for a bus . A bus-shelter crammed with people. Secondly, you can go direct from work to home without stopping time and time again to pick people up. Finally, there are people who don’t like to share their space with unknown persons , and they don’t like standing up during their journey - take buses as an example, in rush hours, it is very difficult to find a spare seat and eventually you end up grasping a hand bar and trying to keep your balance so at not to not be flung around when the bus brakes. On the other hand , there are other people who prefer public transport to private cars. In my view, public transport is cheaper than using your own car. Ask people who use private cars on a regular basis how much money they spend on their cars every month. This is not to mention the price of parking and fuel , or the expense incurred when you take your car to the garage to have it repaired. Unlike private cars, public transport has reserved lanes in many...
Words: 420 - Pages: 2
...the Environment The environment has become nowadays more than an ideological question; it is now a matter of survival. Indeed, most scientists argue that the North Pole ice will melt, flooding the entire surface of the earth; that oil wells will dry in 50 years and we are the last generation that can do something to save the planet. Therefore, Governments must do something, especially the U.S. that refused to ratify the Kyoto Agreement contrary to French government. Actually, environment is one of the cause of the anti-Americanism in Europe in general, and in France in particular. I have been living in the U.S. for 9 months now, and the way U.S. individuals and politicians cope with this issue is different compared to where I come from. France efforts to reduce the human footprint on earth are far more significant than the U.S. The French were very shocked when the U.S. refused to sign the Kyoto agreement. French consider Americans as energy wasters who damage the Earth with their energy-inefficient cars, the absence of efficient public transportation in cities, the absence of a real passenger train network and waste of energy in houses, etc. France discharges 3 times less CO2 per inhabitant than the USA: 8 tons per inhabitant per year compared to 24 tons for the United States of America. This phenomena is due mainly to: The importance (almost 80%) of nuclear power plants in the production of electricity in France; the much lower gas consumption of European cars; the more...
Words: 1012 - Pages: 5
...business. b) (i) Tax authorities such as IRB can withdraw the capital allowances claimed if an asset is sold within 2 years of purchase, then the capital allowances claimed on the plant in the form of balancing charge can be withdrawn in the year of disposal. C) (i) The used passenger car which purchesed by Taylor Sdn Bhd is a passenger vehicle. Thus, the qualifying expenditure will be restricted to RM 50,000. Since the car is used the Finance ( No. 2) Act 2000 does not apply which is increases the qualifying expenditure for the car to a maximun of RM100,000. Para 2(2) states that the qualifying expenditure for motor vehicle ( other than motor vehicle licensed or permitted by the road transport authority for commercial transportation of goods or passengers such as lorry, truck, bus, mini bus, van, station wagon, taxi cab or hire car) is restricted to RM 50,000. The amount of RM 50,000 is computed based on each passenger vehicle and it will be on a cumulative basis if the car is on hire purchase. Commercial vehicles such as lorry, truck, bus, etc are not subject to the qualifying expenditure of RM 50,000. (ii) Capital allowances for the car RM RM Accumulated QPE RM YA 2011 Acquired on 1 Jan 2011 Down payment (cash deposit) 15,000 Principal repaid in one instalment...
Words: 355 - Pages: 2
...new product into its product line. I will decide whether run the project or not. Six issues will be discussed as follows 1) importance of energy cost; 2) project’s cash flows; 3) cost of capital; 4) choose an engine 5) evaluation 6) accept or reject. We should accept the project because of the positive NPV and high IRR. We will gain $532 million in wealth which is a big money on the scale like this. The company has a bond rating of AA that makes the risk relatively low. So we should definitely say yes. Issues Importance of Energy Cost Road King Trucks, Inc. is a truck manufacturing company. The new CEO Michael Livingston arranged a meeting with the firm’s top managers and engineers considering introducing a large, public transit bus into its current product line. As the oil prices keep going high and have no sign of decreasing. Mr. Livingston thought it would lead people more likely to use public transportation. The price of gas has gone up for the 30th day in a row, and with it tempers are rising. Increased demand for public transportation is expected to continue into the spring [1]. The impact of high oil prices makes people more willingly to use public transportation and there will be an increase of riders. The company should adapt itself to the changes of market. Now it is a fashion to be “Green”. People show great environmental consciousness to the world. It is wise to attract people with public transportation and fulfill their demands. Project’s Cash Flows (see...
Words: 908 - Pages: 4
...Introduction Greyhound Lines, Inc., headquartered in Dallas, Texas is the only nationwide provider of scheduled intercity transportation in the United States. As seen on Greyhound’s web site in 2001 they had more then twenty five million passengers aboard their bus lines and consolidated revenue was $1,022.4 million. Greyhound’s fleet consists of more then 2,300 buses which arrive and depart from one hundred and twelve company-operated terminals and approximately one thousand seven hundred agency-operated terminals. In 2001, the number of employees nationwide on payroll was twelve thousand and of that amount, approximately thirty six percent are drivers. Greyhound bus lines operate a vigorous schedule of twenty-four hours a day, seven days a week. All buses are equipped with air conditioning, restrooms, tinted windows and reclining seats and since its inception in 1914, Greyhound has also expanded into other lines of services which include food, package express services and charter services. In 1998, Greyhound Lines, Inc. showed a profit of 35.2 million dollars which was much to celebrate considering that a profit hasn’t been seen since 1993. However, in 1999 there is a net loss of 16.3 million dollars. This Greyhound Lines, Inc. case study will address many key issues that must be examined in order to put Greyhound back on track, and the recommendations that will follow will try to help Greyhound stay on the road to recovery. Summary of Business & Case Americans...
Words: 3632 - Pages: 15
... SMRT operates two out of the three MRT lines in Singapore (81.7% of the whole network) as well as the Bukit Panjang LRT system (27.1% of the rail length). The company’s bus and taxi operations form a marginal part of the transport systems at an estimate of 26.5% and 12.3% respectively, based on fleet size. In October 2008, public transport fare was increased by a net 0.7%. Transfer rebates were increased by 10 cents while all adult and senior citizen fares were increased by 4.0 cents per ride. However, with the recent shrinking of the Singapore economy, SMRT decided to roll out a fare reduction package from April 2009. The package will include a 4.6% reduction in bus and train fares and higher transfer rebates. 2. ANALYSIS OF INDUSTRY 2.1 Intensity of Rivalry among existing Competitors The public transport industry in Singapore is a duopoly industry, with SBS Transit being the only competitor in SMRT’s core operations, which is MRT and buses. Even so, SMRT’s operations are more focused on the MRT segment (53.96% of total revenue) while the major operating segment of SBS is in the bus industry (79.77% of total turnover). Therefore, there is very little competition between SMRT and SBS. Consumers are also not able to switch from one competitor to another as the train and bus network of SMRT and SBS cover different geographical areas of Singapore. In addition, there is no price war among the rivals because fare prices for buses and trains...
Words: 3625 - Pages: 15
...Summary: For the February 14th issue of NAATBatt’s Advanced Battery Weekly, we highlight recent sector activities. The NAATBatt, U.S. and Asia Indices increased 2.7% w/w, 3.8% w/w and 3.2% w/w, respectively. The S&P 500 and Russell 2000 grew 3.3% w/w and 2.2% w/w, respectively. Key Highlights: • Maxwell Technologies announced it is supplying ultracapacitor-based Engine Start Modules (ESM) to Idle Free Systems to provide cranking power for a new anti-idling system. The Work Truck No Idle Heat System™ could provide up to eight hours of interior cab heat with the truck engine turned off. • The Chinese Ministry of Finance in a joint statement with the Chinese National Development and Reform Commission and the Chinese Technology and Industry ministries announced plans to provide more subsidies for electric vehicles (EVs) than previously announced. China will support the promotion of new-energy vehicles in a second batch of cities and regions, including the northeastern provinces of Jilin, Liaoning and Heilongjiang. • XL Hybrids was named by Fast Company publication to its 2014 Ranking of World’s 50 Most Innovative Companies. XL Hybrids was ranked 3rd in the ‘Innovative Companies in Energy’ section trailing Tesla Motors and General Electric. • Sumitomo has developed and installed a large-scale power storage system that utilizes used electric vehicle (EV) batteries. The commercial scale storage system, built on Yume-shima Island, Osaka, will begin...
Words: 1989 - Pages: 8
...CHAPTER 14 Human Capitalism Parachuting cats into Borneo — Stopping the waste of people — Curitiba’s web of solutions — Faster travel without freeways — Subways on the surface — Simple, fast, fun, and cheap — When garbage isn’t garbage — No hunger pangs — A place for living — A symbol of the possible W H AT D E S T I N AT I O N D O E S O U R S O C I E T Y W A N T T O R E A C H , A N D H O W W I L L I T get there? Lessons in what not to do can often be found in cities, where most officials, overwhelmed by a flood of problems, try to cope by naming and solving them one at a time. If they are faced with congestion, their answer is to widen streets and build bypasses and parking garages. Crime? Lock up the offenders. Smog? Regulate emissions. Illiteracy? Toughen standards. Litter? Raise fines. Homelessness? Build shelters, and if that seems to fail, jail the loiterers. Insufficient budget to fund all these competing priorities? Raise taxes or impose sacrificial austerity, to taste. Disaffected voters? Blame political enemies. Sometimes single-problem, single-solution approaches do work, but often, as previously described, optimizing one element in isolation pessimizes the entire system. Hidden connections that have not been recognized and turned to advantage will eventually tend to create disadvantage. Consider what happened in Borneo in the s. Many Dayak villagers had malaria, and the World Health Organization had a solution that was simple and direct. Spraying DDT seemed...
Words: 9994 - Pages: 40
...to residential areas. Factories that we chose were much have raw resources, such as the various types of tuber crops that will earn our own and we ensures that our raw materials are made available to us within a relatively short distance and at minimal cost. 5.4 Available of manpower We have the capacity to increase or decrease manpower depending on the job size and schedule 5.5 Transportation Facilities Public transportation such as buses and taxis are easily accessed in Malacca. 5.6 Distance from customers Our business is located near to several housing areas in Malacca, with the closest being only 2km away from our location. Customers can reach our premises by three types of public transportation, i.e. by taxi, bus or beca. 5.7 Basic amenities (electrical, water, and telephone facilities) Our premise is located near an...
Words: 487 - Pages: 2
...Waste Land" by Alan Paton Describe a surprising ending and analyse how it links to the rest of the text. “The Waste Land” by Alan Paton, is about a man who is on a bus. When he gets off the bus, he is attacked by several young men and it is suggested that the men want his purse which contained his wages. This short story has a surprising ending and it helps the reader understand other parts of the text that foreshadowed the ending. “The Waste Land” is very surprising as it ends with the man’s son having been killed in the incident. The short story ends with the narrator realizing that one of the men that have just attacked him was in fact his very own son and that he has just killed his son. When the gang dumps Freddy’s body under the lorry, where the man is, the man moved away from the body as if not wanting to accept his son’s death. The narrator displays the father’s shock and mental agony. This ending is linked to the title as “The Waste Land” suggests that the setting is very desolate, people are desperate and that the people will do anything to help themselves in their time of need even betray their own family. This is shown when the man says “People, arise! The world is dead.” This illustrates how the defender thinks that the world is corrupt. The attackers having waited for him by the bus stop shows that they knew that he would be there thus supports his son having a part in the gang. The ending is foreshadowed by the gang waiting for him to arrive, which shows...
Words: 430 - Pages: 2
...Table of Contents Executive Summary 2 Problem Statement 2 Situation Analysis Company Objectives 2 Company Background 3 S.W.O.T. Analysis 4 Market Analysis 5 STEEPL 6 Consumer Analysis 7 Case Keys 8 Alternatives 9 Recommendation 10 Action Plan 10 Contingency Plan 11 Appendix A Exhibit 1 Segmentation Chart 12 Bibliography 12 Executive Summary MMI Product Placement Inc., established in 1985, is the pioneer in the business of product placement in Canada. MMI leveraged its relationship with the Canadian entertainment industry to incorporate its clients’ brands into films and TV shows. Greyhound, the country’s largest provider of intercity bus transportation, recruited MMI services to provide cost-effective ways to communicate its marketing message to consumers. Philip Hart, president of MMI, was preparing to make a final pitch to sign up Greyhound as client. For Greyhound, the major competitors include VIA Rail, owned automobile, and airline transportation companies. The consumer segmentation can be divided into three groups including college and university students, newer professionals and established professionals. The target market will be age 18 to 24 college and university young professionals. Philip Hart needs to decide which promotional vehicle would be best for Greyhound’s product placement. The alternative choices include to stick with traditional advertising, or product placement on TV series shows like “Corner Gas” or...
Words: 2713 - Pages: 11
...average rainfall for 2011 till april location JAN FEB MAR APR MUMBAI 110 65 11.9 32 NEW YORK 33 98 44 555 CAIRO 16 678 56 89.09 MADRID 79 11 77 32 TOKYO 444 98 123 123 TORONTO 22 232 445 45 DALLAS 40.98 54 66.01 77.8 AMSTERDAM 43 55 35 65 DELHI 45 122 64.03 132 CHILE 24 66.9 21 33.8 If there are images in this attachment, they will not be displayed. Download the original attachment Prepositions Exercises on Prepositions Prepositions are short words (on, in, to) that usually stand in front of nouns (sometimes also in front of gerund verbs). Even advanced learners of English find prepositions difficult, as a 1:1 translation is usually not possible. One preposition in your native language might have several translations depending on the situation. There are hardly any rules as to when to use which preposition. The only way to learn prepositions is looking them up in a dictionary, reading a lot in English (literature) and learning useful phrases off by heart (study tips). The following table contains rules for some of the most frequently used prepositions in English: Prepositions - Time English Usage Example on days of the week on Monday in months / seasons time of day year after a certain period of time (when?) in August / in winter in the morning in 2006 in an hour at for night for weekend a certain point of time (when?) at night at the weekend at half past nine since from a certain point of time (past till now) since 1980 ...
Words: 883 - Pages: 4
