Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
We have discussed the computation of the future value in the previous sections; here let us work the process in opposite. Let us assume you have won a lottery ticket worth Rs. 1000 and such Rs. 1000 is payable after three years. You should be interested in understanding the present value of Rs. 1000. Whether the interest rate is 10 percent, the present value can be computed by discounting Rs. 1000 to the present point of time as given below:
Value three years hence = Rs. 1000 (1/1.10)
Value one years hence = Rs. 1000 (1/1.10) (1/1.10)
Value now (Present Value) = Rs. 1000(1/1.10) (1/1.10) (1/1.10)
Formula
For compounding translates a value at individual point in time into a value at several future points in time. The opposite method translates future value in present value. Discounting translates a value get back in time. By the basic valuation equation
FV = PV (1 + k)n
Dividing both the sides by (1+k)n we find that
PV = FV [1/(1 + k)]n ............................Eq(10)
The factor [1/(1 + k)]n is termed as the discounting factor or the present value interest factor [PVIFk,n]
How do I figure fair value of assets..2 year estimated useful life and indefinite life recognized by purchased company
I have a case study due in one of my classes. There are 3 pages of information about the company in the case, and there are 12 questions I must complete. Each question is basically
Errors in Financial Statements The following financial statements are available for Sherwood Real Estate Company: Balance Sheet Assets Liabilities Cash . . . . . . . . . . . . . .
As of January 1, 2011, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses: Cash 80,000 non cash
Question: The manager of Ben and Jerry's Ice Cream is told that the direct material quantity variance for cherries in Cherries Garcia Ice cream is favorable. What could explain thi
Answer both parts of this task. Part (i) is worth a maximum of 5 marks and Part (ii) is worth a maximum of 10 marks. (i) List the elements of the tort of negligence. (ii) Enr
Preference share capital in subsidiary (irredeemable) Investment in preference shares does not lead to ownership and therefore, if the holding company owns part of the preference
Realisation of assets 1. Divisible property : The ownership of the company's property does not vest in the liquidator (unless the court makes a vesting order: s.240); but
Q. Explain about Mutual Fund? Mutual Fund - Investment Companythat usually offers its shares to general public and invests the proceeds in a diversified portfolio of SECURITIES
what is the profitability of
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd