Essay about fin 600 - 2169 Words

FIN 600 – Lecture 3 Discounted Cash Flow Valuation Chapter Outline Time Value of Money Valuation: The One-Period Case The Multiperiod Case Compounding Periods Simplifications What Is a Firm Worth? Time Value of Money ï  ° ï  ° ï  ° ï  ° A dollar received today is worth more than a dollar received in the future. Interest - is the return you receive for investing your money. The interest rate is the basis for a test that any proposed investment must pass. Example: ï  ® ï  ® ï  ® Putting $100 in the bank Earn 6% interest After 1 year $106 $100 $106 Future Values and compound rate Future Value - Amount to which an investment will grow after earning interest. Simple Interest - Interest earned only on the original†¦show more content†¦Ã¯  ° If we looked at three projects – Assume interest rate is 6% ï  ° one that promised $10 in 1 year, one that promised $15 in 5 years, one that promised $25 in 10 years, ï  ° which one would you choose? ï  ° ï  ° The Application of Present value ï  ° It provides a common ground for people to compare different investments. ï  ° If we looked at three projects – one that promised $10 in 1 year, one that promised $15 in 5 year, one that promised $25 in 10 year, which one would you choose? ï  ° PV1 = $10 /(1+6%)=$9.43 PV2 = $15 /(1+6%) 5 =$15*0.747=$11.21 PV3 = $25 /(1+6%) 10 =$25*0.558=$13.95 Pick the one with the highest PV ï  ° ï  ° ï  ° 17 The Rule of 72 ï  ° Estimates how many years an investment will take to double in value ï  ° Number of years to double = 72 / annual compound growth rate ï  ° Ex. 72 / 8 = 9 therefore, it will take 9 years for an investment to double in value if it earns 8% annually What Rate Is Enough? Assume the total cost of a college education will be $50,000 when your child enters college in 12 years. You have $5,000 to invest today. What rate of interest must you earn on your investment to cover the cost of your child’s education? About 21.15%. FV ï€ ½ C0 ï‚ ´ (1 ï€ « r ) T $50,000 (1 ï€ « r ) ï€ ½ ï€ ½ 10Show MoreRelated SeaWorld Essay1359 Words   |  6 PagesBottlenose dolphins are one of thirty-two species of marine dolphins (World Book 297). Their scientific name is Tursiops Truncatus. Males are usually longer and heavier than females. Bottlenose dolphins can grow to be thirteen feet long and weigh up to 600 pounds (Bottlenose Dolphins). This makes bottlenose dolphins the largest of the beaked dolphins (Dolphin Research Center). Bottlenose dolphins have slick and rubbery skin with no sweat glands or hair. Their epidermis is ten to twenty times thickerRead MoreFIN 571 Final Exam Latest UOP Study Materials1677 Words   |  7 Pagesï » ¿FIN 571 Final Exam Multiple Choice Question 51   You are provided the following working capital information for the Ridge Company: Ridge Company Account $       Inventory $12,890 Accounts receivable 12,800 Accounts payable 12,670       Net sales $124,589 Cost of goods sold 99,630    Cash conversion cycle: What is the cash conversion cycle for Ridge Company? 38.3 days 46.4 days 83.5 days 129.9 days   Find the final exam answers here FIN 571 Final Exam Multiple Choice Question 58 The cash conversion cycleRead MoreSea World Empty The Sea Essay1486 Words   |  6 Pagesscaled down to human size. Orcas are very limited to do the things that their natural instincts would do if they were free in the wild. This is a massive problem as the orcas then begin to show signs of poor heath such as sunburn, collapsed dorsal fin, aggression and of course life expediency. SeaWorld had stated on their website â€Å"we create a controlled setting for science that is impossible to replicate in the wild. Orcas in SeaWorld’s care help science better to understand and conserve wild killerRead MoreAccounting for Incomplete Records58807 Words   |  236 PagesAdvance Financial Accounting (FIN-611) VU LESSON # 1 ACCOUNTING FOR INCOMPLETE RECORDS 1. Introduction This topic is also known as Single Entry System of Accounting. In this chapter we will learn how an accountant prepares financial statements of those organizations which are not keeping up proper double entry book keeping system of accounting. 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Tachometer should read 600-650 at idle. Check engine water temperature gauge. Range is 175-200 F with engine warmed up. Check primary air pressure gauge and secondary air pressure gauge. Normal range is 90 to 130 psi. Make sure warning buzzerRead MoreBiology of a Squid Essay577 Words   |  3 PagesSquids are highly evolved, and have developed a number of traits uncommon to most other mollusks. Fossil records of cephalopods have dated back the Cambrian Period (about 600 million years ago). Structurally, squids have only small variations of a basic theme common to all cephalopods. They are spherical or cigar-shaped with two fins used to stabilize movement when swimming. Ten arms are easily distinguished emerging from near the mouth Eight of these arms each have four rows of suction cups encircledRead MoreShould Seaworld Close? Persuasive Essay1303 Words   |  6 Pageswhales’ health and the risks of the trainers. Many of the orcas being held in captivity have many problems varying from dental problems, depression, and general health. First, almost every whale being held in captivity has a collapsed dorsal fin. The collapsed dorsal fin is very rare in the wild, only 2-5% of whales have it. Its mostly caused by depression and what food the whales are consuming. The whales at SeaWorld are given antidepressants before each show because of how depressed they are. They haveRead MoreEnvironmental And Sustainability Considerations For Very Large Systems1291 Words   |  6 Pagescompared to fans. The chip carrier can either be cooled using air or by immersing in fluroinert liquid. Immersion cooling can be used with fins and fans as seen in Figure 8 to increase cooling. The heat generated forms bubbles in the fluid with transfer heat from device to the finned condenser where the fluid cools and turn to liquid and falls back into pool. The fins are further cooled using fans to increase cooling density. This can provide cooling of heat fluxes as high as 100 W/cm2. However, the fluidRead MoreFin 3716 Midterm Exam1484 Words   |  6 PagesFIN 3716 Midterm Exam Click Link Below To Buy: http://hwaid.com/shop/fin-3716-midterm-exam/ Q 1 : Activities of a firm which require the spending of cash Q 2 : The sources and uses of cash over a stated period of time are reflected on the 3: Common-size income statement is an accounting statement that expresses all of a firms expenses as a percentage of 4: Standardizes items on the income statement and balance sheet relative to their values as of a common point in time