minus salvage value), interest on the money invested, repairs for normal use, property taxes, and insurance. Repairs, property taxes, and insurance are usually rough estimates by percentage of price, with increases in repairs assumed to offset decreases in the other two. Interest is often loosely accounted for multiplying an average value of the item by an interest rate (discount, opportunity, MARR). This is crude and can be improved by using time value of money to convert price and salvage to an annual
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aims to enable students to: 1. Introduce with the various aspects of financial management. 2. Develop essential skills in making financial decisions. 3. Apply the appropriate techniques in making decisions. | 4. | Total Student Learning Time (SLT) | Total Face to Face | Total | 5. | | L | T | P | O | A | B/O | IL | | L = LectureT = TutorialP = Practical(Lab)O= Others A= AssessmentB/O=Blended /Online learningIL= Independent learning | 28 | 14 | | | 4 | 14 | 60 | 6.
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GSM 5110: Economics, Finance and Markets Homework 2: Time Value of Money (Multiple Cash Flows; Annuity; Loan Amortization; EAR vs. APR) Due 01/29/14 Please answer the following questions. There are three options regarding the format to complete this assignment. 1) Type everything including all math-related content; 2) Type the non-math-related content and leave enough space to handwrite math-related content such as equations and special symbols after you print it out; 3) Handwrite everything
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account for long-term contracts under IFRS, equal amounts of revenue and cost are recognized until all costs are recovered. True False 9. Recognition of franchise fee revenue is dependent on judgments of both substantial performance and fee collectability. True False 10. Initial franchise fees are always recognized on the date they are received. True False 11. A decrease in the receivables turnover ratio indicates a decrease in the time between credit
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of this report I have tried to stay objective and record accurate information as to the best of my knowledge. Some sections of this report may reflect my own conclusions, suggestions and justifications relating to the subject. Thank you for your time reading, marking my report and giving the opportunity to learn and develop new skills by your guidance. Yours sincerely, Edina Tosoki CONTENTS CHAPTER 1 3 INTRODUCTION 3 (4.2) 3 (D2) 4 CHAPTER 2 5 LITERATURE 5 (4.1) 5 (4.3)
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PAGE # 1 Essentials of Corporate Finance, 7/e Solved McQs PAGE # 2 Introduction to Financial Management Q#1 Business finance includes determining which long-term assets a firm should purchase. A) True B) False Q#2 The board of directors has the power to act on behalf of the shareholders to hire and fire the operating managers of the firm. In a legal sense, the directors are "principals" and the shareholders are "agents." A) True B) False Q#3 In capital budgeting, the financial manager
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CHAPTER 3 RATIO ANALYSIS 3-1 3-2 (d) No effect (e) No effect 3-3 Current liabilities = $40,000 Cash + accounts receivable = $40,000 Sales = $200,000 Receivables = $10,000 Quick assets = cash + receivables = cash + $10,000 = $40,000 Cash = $30,000 Inventory = $20,000 Cash $ 30,000 Notes payable $ 40,000 Receivables 10,000
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12% and 13% | | | between 9% and 10% | | | between 7% and 8% | 5 points Question 3 1. ------------------------------------------------- ------------------------------------------------- "Ian would like to save $1,500,000 by the time he retires in 40 years. If he believes that he can achieve a 7% rate of return, how much does he need to deposit each year to achieve his goal? " ------------------------------------------------- Answer | | "$9,692 " | | | "$27,500 " |
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of year 1 Balance, beginning of year 2 Second year interest Balance, end of year 2 Balance, beginning of year 3 Third year interest Balance, end of year 3 $ 1,000.00 60.00 $ 1,060.00 $ 1,060.00 63.60 $ 1,123.60 $ 1,123.60 67.42 $ 1,191.02 Time value of Money: 1. A single sum: Assume we will save $1,000 for three years and earn 6% interest compounded annually. On 1/1 in Year 1: $1,000 on Dec. 31 in Year3: $ 1,191.02 (a) Future value of a single sum = Present value * (1+ r) n Future value of $1000
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.....................xiv Acknowledgements ........................................................................................... xv About The Author ................................................................. xvi PART 1 TIME VALUE OF MONEY ..... 1 Chapter 1 Single Cash Flow ....................................................1 1.1 Present Value ............................................................................................... 1 1.2 Future Value .............
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