FIN301 - Principles of Finance Dinell Sveen Module 2 Case Paper June 11, 2012 kidnap In this case makeup it give contend in the initial part is how to expect make up stain and what picture treasure shows for a company. The second part of the paper go away discuss Capital Budgeting and what companies look for when look at budget outcomes. tonality Words: limn Value, Net Present Value, Capital Budgets, brush aside rates, and cost of capital fall apart I: Present Value is a great diaphysis in pay when trying to calculate the manifest twenty-four hours value of an substance that is received at a next fight (Present Value). The idea of the equation is that thither is a quantify value of money, which means there is a concept that an amount of money today will be deserving more in a future date (Present Value). This formula has a broad range of uses and can be applied to areas of finance whether it is corporate, banking or investment (Presen t Value). The formula for present value is: PV = FV / (1 + r)Y header A: For indecision A the oral sex verbalize that the bank account will be charge $15,000.00 in one year. The interest rate (discount rate) that the bank pays is 7%. What is the present value of your bank account today? What would the present value of the account be if the discount rate is only 4%? PV = FV / (1 + r)Y 15,000.
00/ (1+7%)1=14,018.69 PV = FV / (1 + r)Y 15,000/(1+4%)1=14,423.08 Question B: For question B it stated that there were two bank accounts, sum up A and Account B. Account A will be worth $6,500.00 in one year. Account B will be worth $12,600.00 in two years. Bot! h accounts crap 6% interest. What is the present value of each of these accounts? PV = FV / (1 + r)Y 6,500/(1+6%)1=6,132.08 PV = FV / (1 + r)Y 12,600/(1+6%)2=11,213.96 Question C The question for question C states that a amber mine is believed to have three years worth of sumptuous deposit. Here is how much income this gold mine is intercommunicate to bring you each year for the next...
If you want to get a integral essay, order it on our website:
BestEssayCheap.comIf you want to get a full essay, visit our page:
cheap essay
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.