Chapter 4: Time Value of Money Questions Book Title: Financial Management: Theory and Practice (4-2) What is an opportunity cost rate? How is this rate used in discounted cash flow analysis, and where is it shown on a time line? Is the opportunity rate a single number that is used to evaluate all potential investments? © 2017 Cengage Learning, Cengage Learning Chapter Review Questions (4-1) Define each of the following terms: a. PV; I; INT; ; PMT; M; ; ; b. Opportunity cost rate c. Annuity; lump-sum payment; cash flow; uneven cash flow stream d. Ordinary (or deferred) annuity; annuity due e. Perpetuity; consol f. Outflow; inflow; time line; terminal value g. Compounding; discounting h. Annual, semiannual, quarterly, monthly, and daily compounding i. Effective annual rate (EAR or EFF%); nominal (quoted) interest rate; APR; periodic rate j. Amortization schedule; principal versus interest component of a payment; amortized loan (4-3) An annuity is defined as a series of payments of a fixed amount for a specific number of periods. Thus, $100 a year for 10 years is an annuity, but $100 in Year 1, $200 in Year 2, and $400 in Years 3 through 10 does not constitute an annuity. However, the entire series does contain an annuity. Is this statement true or false? (4-4) If a firm’s earnings per share grew from $1 to $2 over a 10-year period, the total growth would be 100%, but the annual growth rate would be less than 10%. True or false? Explain. (4-5) Would you rather have a savings account that pays 5% interest compounded semiannually or one that pays 5% interest compounded daily? Explain. Chapter 4: Time Value of Money Questions Book Title: Financial Management: Theory and Practice Printed By: Kristina Mack ([email protected]) © 2017 Cengage Learning, Cengage Learning © 2020 Cengage Learning Inc. All rights reserved. No part of this work may by reproduced or used in any form or by any means graphic, electronic, or mechanical, or in any other manner - without the written permission of the copyright holder. BUS625: Data & Decision Analytics Week 1 Response 1 Guided Response: Your initial response should be a minimum of 300 words in length. Respond to at least two of your classmates by commenting on their posts. Do you see any additional value in their data? Though two replies are the basic expectation for class discussions, for deeper engagement and learning you are encouraged to provide responses to any comments or questions others have given to you. Continuing to engage with peers and the instructor will further the conversation and provide you with opportunities to demonstrate your content expertise, critical thinking, and real-world experiences with the discussion topics. Below there are two of my classmate’s discussion that needs I need to response to their names are Joann Newelland Farshad Farzad Joann Newell Discussion I currently work for JP Morgan Chase, and was surprised at how easy it was to fine financial information with a ...