How much would you pay for a promise to be received one year

Assignment Help Finance Basics
Reference no: EM131337041

Present Value

What is your personal discount rate or rate of preferences? That is, how much would you pay for a promise of $1,000 to be received one year from now? Would you discount it by 10%, 5%, etc?

Do research on the Internet and show the reference for the information. Don't forget to respond to a colleague's posting also.

Professor's Note: In addition to searching the Internet for text related to this threaded discussion, please watch the following videos (click on the following link to access these videos) and post your comments.

https://www.youtube.com/watch?v=ks33lMoxst0 Introduction to Present Value
https://www.youtube.com/watch?v=4LSktB7Pk_c Present Value 2
https://www.youtube.com/watch?v=nScQsMmohZ0 Time value of money calculations using the TI BAII Plus calculator - part 1
https://www.youtube.com/watch?v=EocymirVokM Lesson TVM-10-060 - Clip 06 - PV of an Annuity Due - TI BAII Financial.

Reference no: EM131337041

Questions Cloud

Exploring different business : Exploring different business/IT alignment frameworks, methodologies and tools:
Compare the initial convection heat transfer rates : Compare the initial (immediately after leaving the oven) convection heat transfer rates for the two methods.
What is the effective cost of options if annual borrowing : Venice Inc. is a European firm expecting $40,000,000 in three months. Options are available with the following quotes: Call option at 3% premium and put option 4% premium. Current rate is $1.10/€ and exercise price is $1.15/€. What is the effective c..
Opportunity to synthesize and apply the concepts : In developing this assignment, you have an opportunity to synthesize and apply the concepts, principles, and theories. You will be writing a paper in response to the following hypothetical situation.
How much would you pay for a promise to be received one year : What is your personal discount rate or rate of preferences? That is, how much would you pay for a promise of $1,000 to be received one year from now? Would you discount it by 10%, 5%, etc?
Manager of a fashionable restaurant : The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 28 percent of its business on Friday night, 33 percent on Saturday night, and 19 percent on Thursday night. What seasonal relatives would d..
Explain the pros and cons of the p-e approach : There is a firm whose ROE and BVPS are .08 and $9 respectively next year. IF the P/E is 12 times what is the price of the company next year? Explain the pros and cons of the P/E approach.
Health maintenance organizations : Health Maintenance Organizations (HMOs) and prospective payment systems vary widely in quality and costs and employ a variety of methods to control costs.
Relation between value of a firm and its capital structure : What is the relationship between the value of a firm and its capital structure without a corporate income tax? With a corporate income tax?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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