User Account

All Pages

What is the present value

Assignment Help Accounting Basics
Reference no: EM131539902

Question: 1. Why is the present value of $100 that you expect to receive one year from today worth less than $100 received today? What is the present value of $100 that you expect to receive one year from today, discounted at 12%?

2. Ting Company is considering two alternative investments. The payback period is 3.5 years for investment A and 5 years for investment B.

(1) If management relies on the payback period, which investment is preferred?

(2) Why might Ting's analysis of these two alternatives lead to the selection of B over A?

Reference no: EM131539902

Questions Cloud

The most cost efficient company : Over the years, GE(General Electrics) was respected as one of the most admired company in America under the leadership by Mr. Jack Welch.
What can you say about investment expected rate of return : If the present value of the expected net cash flows from a machine, discounted at 10%, exceeds the amount to be invested.
Received cash from customers when service was performed : Issued common stock to investors in exchange for cash received from investors.Received cash from customers when service was performed.
Suppose you are the newly-elected president trump : Suppose you are the newly-elected President Trump. During your campaign, you promised voters that you would do everything in your power to get investment.
What is the present value : Why is the present value of $100 that you expect to receive one year from today worth less than $100 received today? What is the present value of $100.
Barriers to the flow of goods : By 1993, nations in the European Union (EU) had eliminated all barriers to the flow of goods, services, labor, and capital across their borders.
Research a local health care organization : Determine whether your approach will be market penetration, development, diversification, consolidation, or strategic alliances.
Define the use of the accelerated depreciation method : Assume that Research In Motion manufactures and sells 500,000 units of a product at $30 per unit in domestic markets. It costs $20 per unit to manufacture.
A policy for the americans with disabilities act : Provide an example of how it might be violated by an employer or employee and the approach that can be used to address the violation.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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