Would time value of money matter

Assignment Help Finance Basics

Reference no: EM131334455

1. If a firm's required return were 0 percent, would time value of money matter? As these returns rise above 0 percent, what effect would the increasing return have on future value? Present value?

2. What would happen to the future value of an annuity if interest rates fell in the late periods? Could the future value of an annuity factor formula still be used to determine the future value?

Reference no: EM131334455

Questions Cloud

Create your resume with the appropriate expected ratings : Create your resume with the appropriate expected ratings, experiences, etc. and then when you take the Flight Senior Project course, we will see how your prediction

Pick a current economic topic : For the term paper, you are required to pick a current economic topic that relates to the material we have covered or will cover in this course. You will research and find an article that covers the topic you have chosen.

All-equity plan and levered plan : Yasmin Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, Yasmin would have 180,000 shares of stock outstanding. Under Plan II, there would be 130,000 shares of stock out..

Economic activity on both a domestic and global scale : How do government policies and/or regulations factor into changes in economic activity on both a domestic and global scale? Give a specific example of a policy or regulation that has helped economic activity.

Would time value of money matter : If a firm's required return were 0 percent, would time value of money matter? As these returns rise above 0 percent, what effect would the increasing return have on future value? Present value?

What will be the price of the treasury bill : FIN 351- Assume a $1,000 treasury bill is quoted to pay 7% interest over a three-month period. What will be the price of the treasury bill?

Comment on the current state of the economy : 1. Read the Macroeconomics section of the article "noise" by Fischer Black and comment on the current state of the economy in that context. Just one page please.

What happens to the present value of a cash flow stream : What happens to the present value of a cash flow stream when the discount rate increases? Place this in the context of an investment.

Explain the relationships between the two graphs : What is the relationship between X(0) and X'(0)? If we plot |X(k)| and |X'(k)| on the same graph, explain the relationships between the two graphs.

User Account

All Pages