Week 3 discussion 1 | Accounting homework help

 

Week 3 – Discussion Forum

No unread replies.No replies.

Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

 Present and Future Value of Cash Flow [WLO: 1] [CLO: 1]

The projected amount and timing of cash flows received from an investment impacts the value of that investment. The longer it takes to receive a payment, the less valuable it is to the investor today. The key to comparing different investments is to determine the value of each investment in today’s terms. Every investment can be valued in today’s terms using time value of money mathematics. For this discussion forum, you will practice calculating the value of cash flows using the principles of time value of money mathematics.

Time value of money concepts and math form the cornerstone of finance. This discussion is an opportunity for you to practice using these formulas and to progress in your understanding of this important topic. You will use these concepts later in this course, in other finance courses, and throughout a career in finance. Like many concepts, each time you work with time value of money problems you may develop a slightly different, deeper, and more thorough understanding of the theory. Some of you may be quite comfortable using these formulas, while others may need to spend extra time focusing on the mathematics. However, all of you can progress in your abilities through this discussion activity.

Prepare:

Prior to beginning work on this discussion forum,

Calculate:

  • Calculate a time value of money problem, according to first letter of your last name, and the equation provided for each problem. The equations listed are in the textbook throughout Chapter 4 using the notations 4.XX for each formula, and in the Chapter 4 Summary.

Last NameProblemEquationA through BCompute the future value of $2,000, at an interest rate of 5%, compounded annually, in 6 years.

Equation 4.11:

FVn=PV0×(1+r)nFVn=PV0×(1+r)n

C through DCompute the future value of $1,000, at an interest rate of 3%, compounded annually, in 4 years.

Equation 4.11

FVn=PV0×(1+r)nFVn=PV0×(1+r)n

E through FCompute the present value of $5,000 received in 6 years, using a discount rate of 2%.

Equation 4.14:

PV0=FVn×(1+r)−nPV0=FVn×(1+r)−n

also expressed as:

G through ICompute the present value of $10,000 received in 4 years, using a discount rate of 7%.

Equation 4.14:

PV0=FVn×(1+r)−nPV0=FVn×(1+r)−n

also expressed as:

PV0=FVn(1+r)nPV0=FVn(1+r)n

J through KCompute the future value of annual payments of $100, paid for 5 years, with an interest rate of 8% (compounded).

Equation 4.17:

FVn=CF1×(1+r)N−1+CF2×(1+r)N−2+…CFnFVn=CF1×(1+r)N−1+CF2×(1+r)N−2+…CFn

L through MCompute the future value of annual payments of $1,000, paid for 4 years, using an interest rate of 3% (compounded).

Equation 4.17:

FVn=CF1×(1+r)N−1+CF2×(1+r)N−2+…CFnFVn=CF1×(1+r)N−1+CF2×(1+r)N−2+…CFn

N through PCompute the present value of annual cash payments of $200 per year, for 4 years, using a discount rate of 5%.

Equation 4.16:

PV0=CF1(1+r)1+CF2(1+r)2+…CFn(1+r)nPV0=CF1(1+r)1+CF2(1+r)2+…CFn(1+r)n

Q through SCompute the present value of annual cash payments of $600 per year, for 3 years, using a discount rate of 8%.

Equation 4.16:

PV0=CF1(1+r)1+CF2(1+r)2+…CFn(1+r)nPV0=CF1(1+r)1+CF2(1+r)2+…CFn(1+r)n

T through VCompute the present value of a $400 cash payment received in perpetuity, using a discount rate of 10%.

Equation 4.19:

PV0=CFrPV0=CFr

W through ZCompute the present value of a $750 cash payment received in perpetuity, using a discount rate of 6%.

Equation 4.19:

PV0=CFrPV0=CFr

Need help with your calculations? Check out the videos included in this resource: Week 3 Discussion Help (Links to an external site.).

Write:

  • Write out each step you used to solve the problem you were assigned, and provide the solution to the problem as well.
    • Present your final solution as a decimal approximation carried out to the second decimal point (e.g., $000.00).
  • Explain the meaning of the problem and your solution in your own words.
  • Explain your answers to the following questions:
    • If the rate in the problem was higher, would the solution be higher or lower?
    • If the time period in the problem was shorter, would the solution be higher or lower?
  • Describe an element of this problem that was challenging to you.
  • Ask at least one question about time value of money mathematics.
Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.

Essays

Research Papers

At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.

Admissions

Thesis Writing Service

Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?

Editing

Custom Papers

Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.

Coursework

Essay Writing

Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.

Coursework

Coourse Work Writing

Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !

Coursework

Dissertation Writing Service

High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.