About the economist concept of the time value of money

Assignment Help Financial Management
Reference no: EM131309639

Suppose your brother or sister owed you $500.00. Thinking about the economist's concept of the time value of money. Would you rather have this money repaid to you right away, in one payment, or spread out over a year in four installment payments? Would it make a difference either way? Discuss this with you classmates. Your answer must be substantial and thoughtful and be a minimum of 250 words.

Reference no: EM131309639

Questions Cloud

Cash from a donor who temporarily restricted its use : The clinic incurred $4,500,000 in general expenses and paid cash for them. The hospital received $1,000,000 in cash from a donor who temporarily restricted its use.
What is the stock price after the recap : Lee Manufacturing's value of operations is equal to $960.00 million after a recapitalization (the firm had no debt before the recap). Lee raised $244.00 million in new debt and used this to buy back stock. Lee had no short-term investments before or ..
Assume a required rate of return on bond : What is the value of a bond that has a par value of $1,000, a coupon rate of 11.79 percent (paid annually), and that matures in 18 years? Assume a required rate of return on this bond is 9.06 percent round answer two decimals
Economic order quantity model : Cheeseburger and Taco Company purchases 16,205 boxes of cheese each year. It costs $28 to place and ship each order and $5.73 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is t..
About the economist concept of the time value of money : Suppose your brother or sister owed you $500.00. Thinking about the economist's concept of the time value of money. Would you rather have this money repaid to you right away, in one payment, or spread out over a year in four installment payments? Wou..
Economic order quantity model in placing the orders : Cheeseburger and Taco Company purchases 15,178 boxes of cheese each year. It costs $28 to place and ship each order and $3.35 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. Calculate..
Ebit indifference level associated with two financing plans : EBIT-EPS Analysis) Abe Forrester and three of his friends from college have interested a group of venture capitalists in backing their business idea. The proposed operation would consist of a series of retail outlets to distribute and service a full ..
Projected sales for the first six months : CraftCo, Inc.' projected sales for the first six months of 2012 are given below: Jan. $500,000 April $490,000 Feb. $740,000 May $740,000 Mar. $380,000 June $610,000 40% of sales are collected in cash at time of sale, 50% are collected in the month fo..
Modified internal rate of return when evaluating projects : Marathon Technologies, Inc. is using the modified internal rate of return (MIRR) when evaluating projects. The company Is able to reinvest cash flows received from the project at an annual rate of 13.10 percent. Find the MIRR for the companys project..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the underlying factor that would cause such a change

What is the underlying factor that would cause such a change? Give an explanation based on the IFE of the forces that would cause a change in the Australian dollar.

  Purchased a zero coupon bond one year

You purchased a zero coupon bond one year ago for $173.85. The market interest rate is now 9 percent. If the bond had 20 years to maturity when you originally purchased it, what was your total return for the past year? Assume semiannual compounding. ..

  Graph the value of a call option

Graph the value of a call option (vertical axis) against a, the instantaneous standard deviation of the returns on  the underlying asset;- What are the conditions under which an American put would be exercised early on a stock that pays no dividends?

  Dollar spot exchange rate

The current Swiss franc to U.S. dollar spot exchange rate is SFr1.60/$. The expected inflation over the coming year is 2 percent in Switzerland and 5 percent in the United states. According to purchasing power parity, what is the expected value of th..

  Submitted bids to develop a new video display technology

Two competing companies have submitted bids to develop a new video display technology. The yearly development cost of Alpha expressed in actual dollars will be $150,000 the first year and increase by 5% per year over the five year contract.

  Saved to supplement his pension and social security

Calculate the future value of $5,000 earning 10% after one year assuming annual compounding. Richard Gorman is 65 years old and about to retire. He has $500,000 saved to supplement his pension and Social Security, and would like to withdraw it in equ..

  Statements is correct in relation to independent projects

Which one of the following statements is correct in relation to independent projects?

  Calculate the price of a three month european call option

Calculate the price of a three-month European call option on the spot value of silver.  - The three-month futures price is $12, the strike price is $13, the risk-free rate is 4% and the volatility of the price of silver is 25%.

  Through its open market operations

Through its open market operations, the Federal Reserve recently increased deposits at financial institutions by $80 billion. If the reserve requirement for all deposits is 8 percent, what is the maximum effect that the Fed’s actions can have on tota..

  What is the present value of the annuity

A nine-year annuity that makes 36 quarterly payments of $6,700 will begin 6 years from now with the first payment coming 6.25 years from now. If the discount rate is 4.5 percent compounded quarterly, what is the present value of the annuity?

  When used as evidence-what does an effective example do

When used as evidence, what does an effective example do?

  Do you consider the product to be a success or failure

Do you consider the product to be a success or failure from the BoS perspective, from UBSWarburg's perspective, and why?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd