Computing the present value of future dollars

Assignment Help Financial Management
Reference no: EM13829136

Computing the present value of future dollars is known as:

interpolating.

compounding.

annualizing.

discounting.

Reference no: EM13829136

Questions Cloud

Knowledge management-organizational learning and hrm : Write a 2000 word essay on the relationship between knowledge management, organizational learning and HRM.
Invest money-rate of return : (Ignore income taxes in this problem.) Assume you can invest money at a 14% rate of return. How much money must be invested now in order to be able to withdraw $5,000 from this investment at the end of each year for 8 years, the first withdrawal occu..
Examine how communication strategies work in conjunction : Examine how communication strategies work in conjunction with reference groups. Select two different reference groups, and determine whether reference group communication assists or inhibits the consumption process.
The lower the present value of a given future cash flow : The present value of a given amount increases as the number of years over which it is to be discounted decreases. The higher the discount rate, the lower the present value of a given future cash flow.
Computing the present value of future dollars : Computing the present value of future dollars is known as:
Investigating automating process-cash operating costs : The management of Stanforth Corporation is investigating automating a process. Old equipment, with a current salvage value of $30,000, would be replaced by a new machine. The new machine would be purchased for $438,000 and would have a 6 year useful ..
The importance of appropriately evaluating a loan applicant : The importance of appropriately evaluating a loan applicant. The need to establish a monitoring system and follow any warning signals carefully.
Operating assets is considering the purchase of a machine : (Ignore income taxes in this problem.) A company with $675,000 in operating assets is considering the purchase of a machine that costs $77,000 and which is expected to reduce operating costs by $23,000 each year. These reductions in cost occur evenly..
Hr representative handling labor relation issues : Conduct an interview with a Labor Relations or human resources representative who handle labor relation issues regarding unions.  This interview comes from the employers' perspective not the union side of the business.

Reviews

Write a Review

Financial Management Questions & Answers

  What are the standard deviations of the returns for stocks

What are the expected returns for Stocks X and Y, E(rX) and E(rY)? What are the standard deviations of the returns for Stocks X and Y, ?X and ?Y? Suppose you have $1000 to invest, and decide to invest $700 in Stock X and $300 in Stock Y. What are the..

  Calculate and interpret the two profit variances

Consider the following 2012 data for newark general hospital (in millions of dollars) simple budget flexible budget actual results. calculate and interpret the two profit variances. calculate and interpret the two revenue variances. calculate and int..

  Explain feeback corporation stock currently sells

Feeback Corporation stock currently sells for $30 per share. The market requires a return of 11.4 percent on the firm's stock. If the company maintains a constant 3.7 percent growth rate in dividends, what was the most recent dividend per share pa..

  Find the cash break-even quantity

Consider the following project which costs $1,000,000 with a salvage value of $50,000 in 5 years. The project will produce a new type of running shoes which will be sold for $235 and have variable costs of $95 per pair. The company has fixed costs of..

  What is this stock worth to you per share today

XYZ, Inc. just paid $2.00 dividend. Dividends are expected to grow at a 20% rate for the next five years. After that, the company has stated that the annual dividend will be $2.50 per share indefinitely. The required rate of return is 10%. What is th..

  Average does it take the firm to sell an inventory item

Middleton's has sales for the year of $311,400, cost of goods sold equal to 74 percent of sales, and an average inventory of $42,800. The profit margin is 6 percent and the tax rate is 34 percent. How many days on average does it take the firm to sel..

  What is new level of the british pound

The interest rate in the U.K. is 2%, while the interest rate in the U.S. is 1.5%. The spot rate for the British pound is $1.45. According to the international Fisher effect (IFE), what is new level of the British pound?

  Task 1 understand the sources of finance available to a

task 1 understand the sources of finance available to a businesstask 1.1 the business bull explain the type of business

  Allocating funds among competing investment opportunities

The process of allocating funds among competing investment opportunities is referred to as:

  Calculate the futures price of the index

A British investor holds a portfolio of British stocks. The market value of the portfolio is £20million, with a ? of 1.5 relative to the FTSE index. In November, the spot value of the FTSE index is 4,000. The dividend yield and pound interest rates a..

  What is the yield to maturity on this bond

A Japanese company has a bond outstanding that sells for 88 percent of its 100,000 par value. The bond has a coupon rate of 5.50 percent paid annually and matures in 17 years. What is the yield to maturity on this bond?

  What are the depreciation amounts in year one and year eight

An injection molding machine can be purchased and installed for $90,000. It is expected to be kept in service for eight years. It is believed that $10,000 can be obtained when the machine is disposed of the at the end of year eight. What are the depr..

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