required to compare projects of unequal lives. Suggested Questions for Advance Assignment to Students 1. Please assess the economic benefits of acquiring the Vulcan Mold-Maker machine. What is the initial outlay? What are the benefits over time? What is an appropriate discount rate? Does the net present value (NPV) warrant the investment in the machine? 2. What uncertainties or qualitative considerations might influence your recommendation? How, if at all, would an inflation rate of
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Dr. J FINA UBUS 310 Time Value of Money Review—3 ____ 1. A perpetuity is best described as: |a. |An annuity that goes on forever | |b. |Requires the use of the CF or cash flow registers. | |c. |Contains unequal cash flows from period to period | |d. |all of
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year, and $2,400 at the end of two years. The annual interest rate is 4%. What is Y? A) $330.00 B) $400.00 C) $416.00 D) $432.64 E) $167.55 PERPETUITIES & ANNUITIES Ordinary (regular) Annuity & Ordinary Perpetuity – Cash flows start at end of first time period Perpetuity Due & Annuity Due – Cash Flows start immediately PV Perpetuity (ordinary) = C r PV Perpetuity due = PV Ordinary Perpetuity x (1 +r) Basic Annuity Formulas: PVannuity = PVA = C x PVAF (note: C = PMT) FV annuity = FVA = C x FVAF (future
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CHAPTER 6 Accounting and the Time Value of Money ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) | | |Brief Exercises | | | |Topics |Questions | |Exercises |Problems | | 1. |Present value concepts. |1, 2, 3, 4, |
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Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk Previous editions published under the Prentice-Hall imprint Twelfth edition published under the Financial Times Prentice Hall imprint 2005 © 2001, 1998 by Prentice-Hall, Inc. © Pearson Education Limited 2005 The rights of James C. Van Horne and John M. Wachowicz JR. to be identified as authors of this work have been asserted by them in accordance with the Copyright
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industry restructure, and huge competition in next few years. The patents of CSL protect it from competition and the long drug approval time will ensure the new product will take a while getting to the market. It can maintain a sustainable advantage and a relative high growth rate in these 10 years. For CSL itself, it has established in 1921, which has developed a long time, and leads its management and operation system relatively mature. The new acquisition and capital restructure bring new grow opportunity
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STR581 – Strategic Planning and Implementation – Final Exam Study Guide 2013 200 Correctly Answered Questions Remember to check out ACCNerd.com for the latest updates. Section 1 1. “Power prices” use price as a key strategic tool. These “power prices” have discovered the highly ________ effect of price on the bottom line. A. direct B. dramatic C. soothing D. Leveraged E. abrasive 2. Some intermediaries use the following: strategic planning, advanced information systems,
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Offshore Drilling Incorporated Introduction On April 1, 1998, John Dolittle received a call he feared would be coming. His client, Linda Sprague, the President of Petroleum Exploration and Production Corporation (PEPCO), wanted to default on PEPCO’s contract with John’s company, Offshore Drilling Incorporated (ODI). Sprague gave two weeks notice until the papers would be filed. ODI is an offshore drilling contractor that provides mobile drilling rigs, as well as the expertise and personnel to drill
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four-year undergraduate course 2. How much would I earn if I choose to work after graduating in high school and not pursue to college (forgone earnings or opportunity costs)? 3. Supposing this current year is 2004 and I have the lump sum amount of equal to the future cost of going to college, what would be its future value if I choose to invest in a bank? 4. What would be the rate of return of investing such amount to college education? General Assumptions Base year is 2004 (since I will be
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Finance........................................................................................................................ 7 Time Value of Money................................................................................................. 8 Assessment of the GEICO purchase ........................................................................... 8 Time value of money ................................................................................................ 11 An examination of the GEICO
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