1. The document provides examples of time value of money problems involving present value, future value, interest rates, and number of periods calculations. It gives the calculations for various cash flows received or paid in different periods with different interest rates.
2. It includes problems calculating NPV for projects such as factories, machines, and ships where the cash flows include costs, revenues, operating costs, refit costs, and salvage value over multiple periods.
3. The last examples calculate the amount of annual savings needed to buy a boat in 5 years and the annual annuity payment an individual can expect based on investing a present value over their life expectancy.
Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka Cita
A business valuation, also known as a company valuation, is the process of determining the economic value of a business. During the valuation process, all areas of a business are analyzed to determine its worth and the worth of its departments or units.
A solution for the HBR case study, We Googled You. The hiring firm Hathaway Jones, seems to face a problem as they seem to have found a perfect candidate for solving their problems, but land in a fix when some unpleasant news is digged up by the HR regarding her past. WHat should they do?
This particular project is based on ratio analysis of Coca-Cola International. I have analyzed two years financial performance of Coke i.e. from 2011 to 2012. I hope my this effort will help other interested students.
The partnership was formed by Mr. and Mrs. Henry Antoine and Mrs. Sandra Landers, who had become acquainted while working in a Portland, Oregon, restaurant. On November 1, 2009, each of the three partners contributed $16,000 cash to the partnership and agreed to share in the profits proportionally to their contributed capital (i.e., one-third each). The Antoine's’ contribution represented practically all of their saving. Mrs. Landers’ payment was the proceeds of her late husband’s insurance policy.
Reliance Baking Soda is Stewart Corporation's oldest and most established product. The new Domestic Brand Director needs to create a 2008 marketing budget that delivers a profit increase of 10% over 2007 levels. She must first evaluate the effectiveness of past consumer and trade promotions and determine if a price increase will have net bottom line benefits. Then she must decide on the optimal allocation of her marketing budget, taking into account the brand's apparent "cash cow" role in the Household Division of Stewart Corporation. Students are expected to complete a quantitative assignment: create and defend a budget.
The time value of money is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. Time Value of Money is also sometimes referred to as present discounted value.
Test Bank for Fundamentals of Corporate Finance 3rd Edition by Parrinovados ji
Full download link: https://getbooksolutions.com/download/test-bank-for-fundamentals-of-corporate-finance-3rd-edition-by-parrino/
Test Bank Fundamentals of Corporate Finance 3rd Edition by Parrino Chapter included:
Chapter 1: The Financial Manager and the Firm
Chapter 2: The Financial System and the Level of Interest Rates
Chapter 3: The Financial System and the Level of Interest Rates
Chapter 4: Analyzing Financial Statements
Chapter 5: The Time Value of Money
Chapter 6: Discounted Cash Flows and Valuation
Chapter 8: Bond Valuation and the Structure of Interest Rates
Chapter 9: Stock Valuation
Chapter 10: The Fundamentals of Capital Budgeting
Chapter 11: Cash Flows and Capital Budgeting
Chapter 12: Evaluating Project Economics
Chapter 13: The Cost of Capital
Chapter 14: Working Capital Management
Chapter 15 How Firms Raise Capital
Chapter: 16 Capital Structure Policy
Chapter 17: Dividends, Stock Repurchases, and Payout Policy
Chapter 18: Business Formation, Growth, and Valuation
Chapter 19: Financial Planning and Managing Growth
Chapter 20: Options and Corporate Finance
Chapter 21: International Financial Management
Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka Cita
A business valuation, also known as a company valuation, is the process of determining the economic value of a business. During the valuation process, all areas of a business are analyzed to determine its worth and the worth of its departments or units.
A solution for the HBR case study, We Googled You. The hiring firm Hathaway Jones, seems to face a problem as they seem to have found a perfect candidate for solving their problems, but land in a fix when some unpleasant news is digged up by the HR regarding her past. WHat should they do?
This particular project is based on ratio analysis of Coca-Cola International. I have analyzed two years financial performance of Coke i.e. from 2011 to 2012. I hope my this effort will help other interested students.
The partnership was formed by Mr. and Mrs. Henry Antoine and Mrs. Sandra Landers, who had become acquainted while working in a Portland, Oregon, restaurant. On November 1, 2009, each of the three partners contributed $16,000 cash to the partnership and agreed to share in the profits proportionally to their contributed capital (i.e., one-third each). The Antoine's’ contribution represented practically all of their saving. Mrs. Landers’ payment was the proceeds of her late husband’s insurance policy.
Reliance Baking Soda is Stewart Corporation's oldest and most established product. The new Domestic Brand Director needs to create a 2008 marketing budget that delivers a profit increase of 10% over 2007 levels. She must first evaluate the effectiveness of past consumer and trade promotions and determine if a price increase will have net bottom line benefits. Then she must decide on the optimal allocation of her marketing budget, taking into account the brand's apparent "cash cow" role in the Household Division of Stewart Corporation. Students are expected to complete a quantitative assignment: create and defend a budget.
The time value of money is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. Time Value of Money is also sometimes referred to as present discounted value.
Test Bank for Fundamentals of Corporate Finance 3rd Edition by Parrinovados ji
Full download link: https://getbooksolutions.com/download/test-bank-for-fundamentals-of-corporate-finance-3rd-edition-by-parrino/
Test Bank Fundamentals of Corporate Finance 3rd Edition by Parrino Chapter included:
Chapter 1: The Financial Manager and the Firm
Chapter 2: The Financial System and the Level of Interest Rates
Chapter 3: The Financial System and the Level of Interest Rates
Chapter 4: Analyzing Financial Statements
Chapter 5: The Time Value of Money
Chapter 6: Discounted Cash Flows and Valuation
Chapter 8: Bond Valuation and the Structure of Interest Rates
Chapter 9: Stock Valuation
Chapter 10: The Fundamentals of Capital Budgeting
Chapter 11: Cash Flows and Capital Budgeting
Chapter 12: Evaluating Project Economics
Chapter 13: The Cost of Capital
Chapter 14: Working Capital Management
Chapter 15 How Firms Raise Capital
Chapter: 16 Capital Structure Policy
Chapter 17: Dividends, Stock Repurchases, and Payout Policy
Chapter 18: Business Formation, Growth, and Valuation
Chapter 19: Financial Planning and Managing Growth
Chapter 20: Options and Corporate Finance
Chapter 21: International Financial Management
Promoviendo el cambio
Iniciar un año con propósitos renovados nos llena de esperanza, y lo importante de lograrlos es trazarnos metas a corto plazo y activarnos para alcanzarlas. Cada inicio de año, es una oportunidad de hacer realidad nuestros sueños, solo necesitamos la motivación y voluntad para lograrlo. Atrévete a cambiar, el Dépor te brinda algunas alternativas para estar y verte mejor.
T-Poz y el Super Bowl
El Centro Deportivo Israelita te invita a que pases un fin de semana de diversión en familia, esto lo podrás encontrar en el Campamento familiar T-Poz 2014, en donde podrás disfrutar del Super Bowl XLVIII, conviviendo con la familia y los amigos, además de contar con juegos recreativos, actividades manuales, podrás disfrutar de las Cabañas en el Casco, de todo esto y mucho más, solo reserva tu lugar. Aprovecha que solo será del 31 de enero al 3 de febrero. Para mayores informes comunícate a la oficina de T-Poz, en el Comité de Actividades, al teléfono 2629 7400 extensión 381.
El Club Campestre T-Poz, además de ofrecer diversión y convivencia, ha implementado un retiro holístico, Sanación a través de los elementos, con instructores especializados en yoga y meditación. Para encontrar la armonía, paz y tranquilidad en la vida, es necesario estar bien con nosotros mismos, para expresarla posteriormente con las personas que nos rodean. Es momento de reflexionar y aprovechar la oportunidad de reencontrarnos y vivir en comunión con la naturaleza. Recuerda, la felicidad está dentro de nosotros. Los días 7, 8 y 9 de marzo te esperamos en T-Poz en donde vivirás una experiencia extraordinaria. Informes y reservaciones en el Comité de Tepotzotlán, extensión 381. El cupo es limitado.
Gran Reto Fitness 2014
El Comité de Fomento Deportivo ha preparado por quinto año consecutivo el Gran Reto Fitness 2014, el mejor programa de control de peso e imagen. Si lo tuyo es estar sano, cuidar tu cuerpo y ser feliz, entonces acércate a nuestro equipo de profesionales en donde te orientarán de la mejor manera, para bajar esos kilos de más, cuidar tu dieta, salud y bienestar, hasta lograr lo que te has propuesto. Este programa brinda atención y seguimiento personalizado. Ya no estás solo, solo acércate al Fitness Center y lograrás tus propósitos de año nuevo. La salud es un don, por lo que hay que cuidarla para estar bien.
Nuevas deportes
El Deportivo ofrece una gama de deportes, entre ellos está el Tiro con Arco, que a partir de este año iniciará sus actividades. Esta disciplina nos dio medallas en la Macabiada Israel 2013. Pregunta en el Comité de Fomento Deportivo, si es la actividad en la que te gustaría destacar.
Blowie Shyne 2014
La Casa de Todos es un espacio abierto al talento y la creatividad de los jóvenes, por lo que ha lanzado su convocatoria a través del Comité de Juventud a las audiciones para el Blowie Shyne 2014, el 29 y 30 de enero de las 16:00 a las 19:00 horas y el 1 y 2 de febrero de las 9:00 a las 14:00 horas.
Sistema híbrido y cooperativo de traducción automáticaJoseba Abaitua
Para lenguas muy distintas los textos traducidos deben revisarse manualmente. Pero hay muchos textos traducidos por personas que no hace falta que traduzcan las máquinas. ¿Cómo optimizamos este proceso?
Präsentation anlässlich eines Thementreffs der Hauptbibliothek Universität Zürich zum Thema "Neue Open Access-Themen mit Bedeutung für wissenschaftliche Bibliotheken" am 23.7.2012
Mercuri international studie vergütungssysteme im vertriebsaussendienst kom...Christian Peters
Die Befragung von Mercuri International und der Universität St. Gallen erfasst den Status Quo, Trends und Konzepte bei der Gestaltung von Vergütungssystemen für Mitarbeiter im Vertriebsaußendienst.
Uk oil output 50 percent higher by 2018Derek Louden
I thought I'd look at UK Oil Output to see if it is falling as we're being told. What I found was record investment, the highest since the 1970's and output likely to rise by 50% between now and 2018. Ssshhh - don't tell the Scots!
FIN 508 Assignment 7
_____________________________________________________________________________
1
7.1. Sicily Pharmaceuticals has $10 million in debt and $70 million in equity. Its tax rate
is 30%, cost of debt 8%, and beta 1.5. The riskless rate is 5% and the expected return on
the market 12%. Sicily would like to start a newspaper using its existing capital. Sardinia
Times is a daily newspaper. Sardinia has $12 million in debt and $40 million in equity,
with tax rate of 32% and beta 1.25. Find the required rate of return for Sicily in the new
venture. 12.07% ♥
First, consider Sardinia Times, which publishes a newspaper. Its unleveraged beta is
given by (11.3) as
βU(Sardinia) =
βL
1 + (1 − t) B/S
=
1.25
1 + (1 − .32)(12/40)
= 1.038205980
This gives a measure of the risk inherent in the newspaper business. Next, releverage it
using Sicily’s financial data.
βL(Sicily) = βU [1 + (1 − t)
B
S
] = 1.038205980 [1 + (1 − 0.3)(10/70)] = 1.142026578
Use CAPM, equation (7.7) to find the cost of equity for Sicily,
ke = .05 + 1.142026578 (.12 − .05) = .1299418605
Finally, find the risk-adjusted WACC of Sicily for this venture. Use (9.5),
WACC = (1 − .3)(.08)(10/80) + .1299418605 (70/80) = .1206991279 = 12.07% ♥
7.2. Consider the financial information of Cyprus Hotels and Corsica Inns, the two hotel
chains.
Company Debt/Assets β Cost of debt Tax rate
Cyprus Hotels 21% 1.73 10% 33%
Corsica Inns 29% ? 10% 35%
At present, the risk-free rate is 3% and the expected return on the market 11%. Find the
weighted average cost of capital for Corsica. 14.57% ♥
First, find the debt/equity ratio for Cyprus. Since debt is 21%, equity must be 79%.
Therefore, B/S = .21/.79 = 21/79.
Next, find the unleveraged beta of Cyprus, which represents the risk of the hotel industry.
βU(Cyprus) =
βL
1 + (1 − t) B/S
=
1.73
1 + (1 − .33)(21/79)
= 1.468464596
You can use this as the unleveraged beta of Corsica. For Corsica, debt is 29% and equity
71%, and thus B/S = 29/71. Find the leveraged β for Corsica,
FIN 508 Assignment 7
_____________________________________________________________________________
2
βL(Corsica) = βU [1 + (1 − t)
B
S
] = 1.468464596 [1 + (1 − 0.35)(29/71)] = 1.858331605
Use CAPM, equation (7.7) to find the cost of equity for Corsica.
ke = .03 + 1.858331605 (.11 − .03) = .1786665284
Finally, find the WACC of Corsica.
WACC = (1 − .35)(.10)(.29) + .1786665284 (.71) = .1457032352 = 14.57% ♥
7.3. The following table provides the financial information of two companies in different
businesses, with the dollar amounts in millions:
Company Debt Cost of debt Equity Cost of equity Tax rate Business
Crete Co. $33 11% $107 ...
CFA LEVEL 1- Time Value of Money_compressed (1).pdfAlison Tutors
This document focuses on End of Chapter questions and commonly asked questions under Quantitative methods (Time Value of Money ) . The mainly asked questions include :
-calculation and interpretation of Future Value and Present Value of a single sum of money , an ordinary annuity, annuity due, a perpetuity (PV only) and a series of unequal cash flows.
-demonstration of the use of timelines in modeling and solving time value of money
This is a very interesting topic!
need help with current event essay-Middle America realmHi(th.docxrosemarybdodson23141
need help with current event essay-Middle America realm
Hi
(this realm I need to write about consists of mexico, belize, guatemala, honduras, el salvidor and nicaragua)
Please write a summary that ties these 2 stories together:
http://abcnews.go.com/US/wireStory/judge-us-violates-agreement-detention-immigrant-kids-32679960
http://abcnews.go.com/US/wireStory/documents-deportation-shelved-year-honduran-boy-32577012
AND follows the instructions below.
----------------------------
Step 1. Search the Internet for a recently published news article that describes a recent event that occurred in the Middle American realm and that you can relate to geography (i.e., physical, cultural, political, economic). Please Note: The event MUST have occurred during the past 90 days; the news article also must have been published during the past 90 days.
Step 2. Summarize the event (500 - 650 words), citing appropriate sources in APA format. Include the cited sources in the references, also in APA format.
**Analyze the short- and long-term geographic importance of the event within the community, region, and nation in which the event occurred.**
**Analyze the geographic importance of the event on one or more countries that are outside the realm in which the event occurred.**
**Describe what the event reveals about culture, lifestyle, politics, economic conditions, and values (personal, community, or national), etc., of the people in the region or country in which the event occurred.**
FIN 508 Assignment 7
_____________________________________________________________________________
1
7.1. Sicily Pharmaceuticals has $10 million in debt and $70 million in equity. Its tax rate
is 30%, cost of debt 8%, and beta 1.5. The riskless rate is 5% and the expected return on
the market 12%. Sicily would like to start a newspaper using its existing capital. Sardinia
Times is a daily newspaper. Sardinia has $12 million in debt and $40 million in equity,
with tax rate of 32% and beta 1.25. Find the required rate of return for Sicily in the new
venture. 12.07% ♥
First, consider Sardinia Times, which publishes a newspaper. Its unleveraged beta is
given by (11.3) as
βU(Sardinia) =
βL
1 + (1 − t) B/S
=
1.25
1 + (1 − .32)(12/40)
= 1.038205980
This gives a measure of the risk inherent in the newspaper business. Next, releverage it
using Sicily’s financial data.
βL(Sicily) = βU [1 + (1 − t)
B
S
] = 1.038205980 [1 + (1 − 0.3)(10/70)] = 1.142026578
Use CAPM, equation (7.7) to find the cost of equity for Sicily,
ke = .05 + 1.142026578 (.12 − .05) = .1299418605
Finally, find the risk-adjusted WACC of Sicily for this venture. Use (9.5),
WACC = (1 − .3)(.08)(10/80) + .1299418605 (70/80) = .1206991279 = 12.07% ♥
7.2. Consider the financial information of Cyprus Hotels and Corsica Inns, the two hotel
chains.
.
The cost of capital is the minimum rate of return which a company is expected to earn from a proposed project so as to make no reduction in the earning per share to equity shareholders and its market price
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
1. Time Value of Money Problems
1.
What is the PV of $100 received in:
a.
b.
c.
d.
Year 10 at a discount rate of 1 percent.
Year 10 at a discount rate of 13 percent.
Year 15 at a discount rate of 25 percent.
Each of years 1 through 3 at a discount rate of 12 percent.
a. PV = $100/1.0110 = $90.53
b. PV = $100/1.1310 = $29.46
c. PV = $100/1.2515 = $ 3.52
d. PV = $100/1.12 + $100/1.122 + $100/1.123 = $240.18
a
b
c
d
N=
10
10
15
3
I=
1
13
25
12
90.53
29.46
3.52
240.18
0
0
0
100
100
100
100
0
Cpt. PV =
Pmt =
FV =
2.
For each of the following, compute the future value:
Present Value
Years
Interest Rate
$1,000
4
10%
$2,500
6
12.25%
N=
I=
PV =
Pmt =
Cpt. FV =
4
6
10%
12.25%
1,000
2,500
0
0
1,464.10
Future Value
5,001.01
tvmreviewlecture-131226185711-phpapp02.doc
Page 1
2. 3.
For each of the following, compute the interest rate:
Present Value
Years
$5,500
8
$12,000
$7,500
15
$60,000
N=
Cpt. I =
PV =
Pmt =
FV =
4.
8
14.8698%
-5,500
-7,500
0
0
$12,000
Future Value
15
10.2433%
Interest Rate
$60,000
For each of the following, compute the number of years:
Present Value
Interest Rate
Future Value
$300
5%
450
$27,500
10.125%
$60,000
Cpt. N =
I=
PV =
Pmt =
FV =
Years
8.3104
8.0891
5
10.125
-300
-27,500
0
0
450
60,000
tvmreviewlecture-131226185711-phpapp02.doc
Page 2
3. 5.
A factory costs $800,000. You believe that it will produce a cash flow of $170,000 a year
for 10 years. If the opportunity cost of capital is 14 percent, what is the NPV of the factory?
What will the factory be worth at the end of five years?
The present value of the 10-year stream of cash inflows is:
1
1
PV = $170,000 ×
−
= $886,739.6 6
10
0.14 0.14 × (1.14)
Thus:
NPV = –$800,000 + $886,739.66 = +$86,739.66
CF0 = 800,000
CF1 = 170,000
I = 14
F1= 10
Cpt NPV =
86,739.66
At the end of five years, the factory’s value will be the present value of the five remaining
$170,000 cash flows:
1
1
PV = $170,000 ×
−
= $583,623.7 6
5
0.14 × (1.14)
0.14
N=
5
I=
14
Cpt. PV =
Pmt =
FV =
583,623.76
170,000
0
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Page 3
4. 6.
A machine costs $380,000 and it is expected to produce the following cash flows.
Year
1
2
3
4
5
6
7
8
9
10
CF
($000S)
50
57
75
80
85
92
92
80
68
50
If the cost of capital is 12 percent, what is the machine’s NPV?
10
NPV = ∑
t =0
Ct
$50,000 $57,000 $75,000 $80,000 $85,000
= − $380,000 +
+
+
+
+
t
1.12
(1.12)
1.12 2
1.12 3
1.12 4
1.12 5
+
$92,000 $92,000 $80,000 $68,000 $50,000
+
+
+
+
= $23,696.15
1.12 6
1.12 7
1.12 8
1.12 9
1.1210
Or
CF0
-380
I=
12%
CF1
50
Cpt NPV =
23.69615
CF2
57
CF3
75
CF4
80
CF5
85
CF6
92
CF7
92
CF8
80
CF9
68
CF10
50
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5. 7.
Mike Polanski is 30 years of age and his salary next year will be $40,000. Mike forecasts
that his salary will increase at a steady rate of 5 percent per year until his retirement at age
60.
a.
b.
c.
If the discount rate is 8 percent, what is the PV of these future salary payments?
If Mike saves 5 percent of his salary each year and invests these savings at an
interest rate of 8 percent, how much will he have saved by age 60?
If Mike plans to spend these savings in even amounts over the subsequent 20 years,
how much can he spend each year?
a.
Let St = salary in year t
30
St
40,000 (1.05) t −1
=∑
(1.08) t
(1.08) t
t =1
30
PV = ∑
t =1
30
=∑
t =1
30
(40,000/1. 05)
38,095.24
=∑
t
(1.08 / 1.05)
(1.0286) t
t =1
1
1
= 38,095.24 ×
−
= $760,379.2 1
30
0.0286 × (1.0286)
0.0286
PV(salary) x 0.05 = $38,018.96
Future value = $38,018.96 x (1.08)30 = $382,571.75
1
1
PV = C × −
t
r × (1 + r)
r
1
1
$382,571.7 5 = C ×
−
0.08
0.08 × (1.08) 20
1
1
= $38,965.78
−
0.08
0.08 × (1.08) 20
C = $382,571.7 5
Or
a
N=
I=
b
c
30
30
20
2.86
8
8
Cpt. PV = 760,379.2
1
Pmt =
FV =
(0.05)(760,379.21) = 38,018.96 382,571.75
38,095.24
0
0
Cpt FV = 382,571.75
tvmreviewlecture-131226185711-phpapp02.doc
Cpt Pmt = 38,965.78
Page 5
6. 8.
A factory costs $400,000. It will produce a cash inflow of $100,000 in year 1, $200,000 in
year 2, and $300,000 in year 3. The opportunity cost of capital is 12 percent. Calculate the
NPV
Period
Present Value
−400,000.00
0
1
+100,000/1.12 =
+ 89,285.71
2
+200,000/1.122 =
+159,438.78
3
+300,000/1.123 =
+213,534.07
Total = NPV = $62,258.56
CF0
-400,000
I=
CF1
100,000
Cpt NPV =
CF2
200,000
CF3
300,000
tvmreviewlecture-131226185711-phpapp02.doc
12%
$62,258.56
Page 6
7. 9.
Halcyon Lines is considering the purchase of new bulk carrier for $8 million. The
forecasted revenues are $5 million a year and operating costs are $4 million. A major refit
costing $2 million will be required after both the fifth and tenth years. After 15 years, the
ship is expected to be sold for scrap at $1.5 million. If the discount rate is 8 percent, what is
the ship’s NPV?
We can break this down into several different cash flows, such that the sum of these separate
cash flows is the total cash flow. Then, the sum of the present values of the separate cash
flows is the present value of the entire project. (All dollar figures are in millions.)
Cost of the ship is $8 million
PV = −$8 million
Revenue is $5 million per year, operating expenses are $4 million. Thus, operating
cash flow is $1 million per year for 15 years.
1
1
PV = $1 million ×
−
= $8.559 million
15
0.08 × (1.08)
0.08
Major refits cost $2 million each, and will occur at times t = 5 and t = 10.
PV = (−$2 million)/1.085 + (−$2 million)/1.0810 = −$2.288 million
Sale for scrap brings in revenue of $1.5 million at t = 15.
PV = $1.5 million/1.0815 = $0.473 million
Adding these present values gives the present value of the entire project:
NPV = −$8 million + $8.559 million − $2.288 million + $0.473 million
NPV = −$1.256 million
CF0 = -8
I=8
CF1 = 1
F1= 4
CF2 = 1 – 2 = -1
F2 = 1
CF3 = 1
F3= 4
CF4 = 1 – 2 = -1
F4 = 1
CF5 = 1
Cpt NPV =1.2552
F5= 4
CF6 = 1 + 1.5 = 2.5 F6 = 1
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8. 10.
As winner of a breakfast cereal competition, you can choose one of the following prizes:
a.
$100,000 now.
b.
$180,000 at the end of 5 years.
c.
$11,400 a year forever.
d.
$19,000 for each of 10 years.
e.
$6,500 next year and increasing thereafter by 5 percent a year forever.
If the interest rate is 12 percent, which is the most valuable prize?
a.
PV = $100,000
b.
PV = $180,000/1.125 = $102,137
c.
PV = $11,400/0.12 = $95,000
d.
1
1
PV = $19,000 ×
−
= $107,354
10
0.12 × (1.12)
0.12
e.
PV = $6,500/(0.12 − 0.05) = $92,857
Prize (d) is the most valuable because it has the highest present value.
a
b
N=
0
5
10
I=
12
12
12
Cpt. PV = 100,00
0
Pmt =
FV =
102,13
7
c
d
11,400/0.12 = 95,000 107,354
0
0
19,000
100,00
0
180,00
0
0
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9. 11.
Siegfried Basset is 65 years of age and has a life expectancy of 12 more years. He wishes to
invest $20,000 in an annuity that will make a level payment at the end of each year until his
death. If the interest rate is 8 percent, what income can Mr. Basset expect to receive each
year?
Mr. Basset is buying a security worth $20,000 now. That is its present value. The unknown
is the annual payment. Using the present value of an annuity formula, we have:
1
1
PV = C × −
t
r × (1 + r)
r
1
1
$20,000 = C ×
−
12
0.08 × (1.08)
0.08
1
1
= $2,653.90
−
0.08
0.08 × (1.08)12
C = $20,000
N=
12
I=
8
PV =
20,000
Cpt. Pmt = 2,653.90
FV =
0
tvmreviewlecture-131226185711-phpapp02.doc
Page 9
10. 12.
David and Helen Zhang are saving to buy a boat at the end of five years. If the boat costs
$20,000 and they can earn 10 percent a year on their savings, how much do they need to put
aside at the end of years 1 through 5?
Assume the Zhangs will put aside the same amount each year. One approach to
solving this problem is to find the present value of the cost of the boat and then
equate that to the present value of the money saved. From this equation, we can
solve for the amount to be put aside each year.
PV(boat) = $20,000/(1.10)5 = $12,418
1
1
−
PV(savings) = Annual savings ×
0.10 × (1.10) 5
0.10
Because PV(savings) must equal PV(boat):
1
1
−
= $12,418
5
0.10 × (1.10)
0.10
Annual savings ×
1
1
−
= $3,276
Annual savings = $12,418
5
0.10 0.10 × (1.10)
Another approach is to find the value of the savings at the time the boat is purchased.
Because the amount in the savings account at the end of five years must be the price
of the boat, or $20,000, we can solve for the amount to be put aside each year. If x is
the amount to be put aside each year, then:
x(1.10)4 + x(1.10)3 + x(1.10)2 + x(1.10)1 + x = $20,000
x(1.464 + 1.331 + 1.210 + 1.10 + 1) = $20,000
x(6.105) = $20,000
x = $ 3,276
Or
N=
5
I=
10
PV =
0
Cpt. Pmt = 3,275.95
FV =
20,000
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Page 10
11. 13.
Kangaroo Autos is offering free credit on a new $10,000 car. You pay $1,000 down and
then $300 a month for the next 30 months. Turtle Motors next door does not offer free
credit but will give you $1,000 off the list price. If the rate of interest is 10 percent a year,
which company is offering the better deal?
The fact that Kangaroo Autos is offering “free credit” tells us what the cash
payments are; it does not change the fact that money has time value. A 10 percent
annual rate of interest is equivalent to a monthly rate of 0.83 percent:
rmonthly = rannual /12 = 0.10/12 = 0.0083 = 0.83%
The present value of the payments to Kangaroo Autos is:
1
1
$1,000 + $300 ×
−
= $8,938
30
0.0083 × (1.0083)
0.0083
A car from Turtle Motors costs $9,000 cash. Therefore, Kangaroo Autos offers the
better deal, i.e., the lower present value of cost.
Or
N=
I=
30
10/12 = 0.8333
Cpt. PV = 7,934.11 → 7,934.11 + 1,000 = 8,934.11
Pmt =
FV =
300
0
tvmreviewlecture-131226185711-phpapp02.doc
Page 11
12. 14.
You are building an office building and construction will require two years. The contractor
requires a $120,000 down payment now and commitment of the land with a market value of
$50,000. The contractor will be paid $100,000 in 1 year and a final payment of $100,000 at
the completion of construction in 2 years. Your real estate advisor estimates the office
building will be worth $420,000 when completed. What is the NPV if the cost of capital is 5
percent, 10 percent, and 15 percent? Draw a NPV profile. At what rate would the NPV be
zero? Check your answer.
Time
T=0
Land
-50,000
Construction
120,000
T=1
T=2
- -100,000
100,000
Payoff
420,000
Total CFs
170,000
100,000
320,000
The NPVs are:
at 5 percent
⇒ NPV = −$170,000 −
$100,000 $320,000
+
= $25,011
1.05
(1.05) 2
at 10 percent ⇒ NPV = −$170,000 −
$100,000 320,000
+
= $3,554
1.10
(1.10) 2
at 15 percent ⇒ NPV = −$170,000 −
$100,000 320,000
+
= −$14,991
1.15
(1.15) 2
The figure below shows that the project has zero NPV at about 11 percent.
As a check, NPV at 11 percent is:
NPV = −$170,000 −
$100,000 320,000
+
= −$371
1.11
(1.11) 2
CF0
-170,000
I=
5%
10%
15%
CF1
-100,000
Cpt NPV =
$25,011.3
4
$3,553.72
-$14,990.55
CF2
320,000
tvmreviewlecture-131226185711-phpapp02.doc
Page 12
14. 15.
You have just read an advertisement stating, “Pay us $100 a year for ten years and we will
pay you $100 a year thereafter in perpetuity.” If this is a fair deal, what is the rate of
interest?
One way to approach this problem is to solve for the present value of:
(1)
$100 per year for 10 years, and
(2)
$100 per year in perpetuity, with the first cash flow at year 11.
If this is a fair deal, these present values must be equal, and thus we can solve for the
interest rate (r).
The present value of $100 per year for 10 years is:
1
1
PV = $100 × −
10
(r) × (1 + r)
r
The present value, as of year 10, of $100 per year forever, with the first payment in
year 11, is: PV10 = $100/r
At t = 0, the present value of PV10 is:
$100
1
PV =
×
10
(1 + r) r
Equating these two expressions for present value, we have:
1
$100
1
1
$100 × −
=
×
10
10
(r) × (1 + r) (1 + r) r
r
Using trial and error or algebraic solution, we find that r = 7.18%.
tvmreviewlecture-131226185711-phpapp02.doc
Page 14
15. 16.
Which would you prefer?
a.
b.
c.
An investment paying interest of 12 percent compounded annually.
An investment paying interest of 11.7 percent compounded semiannually.
An investment paying 11.5 percent compounded continuously.
Assume the amount invested is one dollar.
Let A represent the investment at 12 percent, compounded annually.
Let B represent the investment at 11.7 percent, compounded semiannually.
Let C represent the investment at 11.5 percent, compounded continuously.
After one year:
FVA = $1 × (1 + 0.12)1
FVB = $1 × (1 + 0.0585)
FVC = $1 × e(0.115 × 1)
After five years:
= $1.1200
2
= $1.1204
= $1.1219
FVA = $1 × (1 + 0.12)5
FVB = $1 × (1 + 0.0585)
FVC = $1 × e(0.115 × 5)
After twenty years:
= $1.7623
10
= $1.7657
= $1.7771
FVA = $1 × (1 + 0.12)20
FVB = $1 × (1 + 0.0585)
= $9.6463
40
= $9.7193
FVC = $1 × e(0.115 × 20) = $9.9742
The preferred investment is C.
b
Nom
Cpt. Eff.
C/Y
c
11.7
Nom
c
11.5
Nom
11.5
12.0422
%
Cpt.
Eff.
12.185
%
Cpt.
Eff.
12.186%
2
C/Y
365
C/Y
730
tvmreviewlecture-131226185711-phpapp02.doc
Page 15
16. 17.
Fill in the blanks in the following table:
Nominal
Interest Rate
Inflation Rate
6.00%
1.00%
Real Interest Rate
10.00%
12.00%
9.00%
3.00%
1 + rnominal = (1 + rreal) × (1 + inflation rate)
Nominal
Interest Rate
6.00%
23.20%
9.00%
Inflation Rate
Real Interest Rate
1.00%
10.00%
5.83%
4.95%
12.00%
3.00%
1.06 = (1 + rreal)(1.01) → rreal = .0495
1 + rnominal = (1.1)(1.12) → rnominal = 0.2320
1.09 = (1.03) (1 + inflation rate) → inflation rate = 0.0583
18.
A leasing contract calls for an immediate payment of $100,000 and nine subsequent
$100,000 semiannual payments at six-month intervals. What is the PV of these payments if
the discount rate is 8 percent?
Because the cash flows occur every six months, we use a six-month discount rate, here
8%/2, or 4%. Thus:
1
1
PV = $100,000 + $100,000 ×
−
= $843,533
9
0.04 0.04 × (1.04)
N=
I=
9
8/2 = 4
Cpt. PV = 743,533 → 743,533 + 100,000 =843,533
Pmt =
FV =
100,000
0
tvmreviewlecture-131226185711-phpapp02.doc
Page 16
17. 19.
You estimate that by the time you retire in 35 years, you will have accumulated savings of
$2 million. If the interest rate is 8 percent and you live 15 years after retirement, what
annual level of expenditure will these savings support?
Unfortunately, inflation will eat into the value of your retirement income. Assume a 4
percent inflation rate and work out a spending program for your retirement that will allow
you to maintain a level real expenditure during retirement.
This is an annuity problem with the present value of the annuity equal to $2 million (as of
your retirement date), and the interest rate equal to 8 percent, with 15 time periods. Thus,
your annual level of expenditure (C) is determined as follows:
1
1
PV = C × −
t
r × (1 + r)
r
N=
I=
1
1
$2,000,000 = C ×
−
15
0.08
0.08 × (1.08)
C = $2,000,000
or
15
8
PV =
2,000,000
Cpt. Pmt = 233,659
1
1
= $233,659
−
0.08
0.08 × (1.08)15
FV =
0
With an inflation rate of 4 percent per year, we will still accumulate $2 million as of our
retirement date. However, because we want to spend a constant amount per year in real
terms (R, constant for all t), the nominal amount (C t ) must increase each year. For each
year t:
R = C t /(1 + inflation rate)t
Therefore:
PV [all C t ] = PV [all R × (1 + inflation rate)t] = $2,000,000
(1 + 0 .04)1 (1 + 0.04)2
(1 + 0 .04)15
R×
+
+. . . +
= $2,000,000
1
(1 + 0 .08)2
(1+ 0.08)15
(1+ 0.08)
R × [0.9630 + 0.9273 + . . . + 0.5677] = $2,000,000
R × 11.2390 = $2,000,000
R = $177,952
Thus C1 = ($177,952 × 1.04) = $185,070, C2 = $192,473, etc.
N=
I=
PV =
15
Remember:
3.8462
1 + rnominal = (1 + rreal) × (1 + inflation rate)
2,000,000
1.08 = (1 + rreal)(1.04) → rreal = .038462
Cpt. Pmt = 177,952
20.
FV = 0
You are considering the purchase of an apartment complex that currently generates a net
cash flow of $400,000 per year. You normally demand a 10 percent rate of return on such
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Page 17
18. investments. Future cash flows are expected to grow with inflation at 4 percent year from
today’s level. How much would you be willing to pay for the complex if it:
a.
b.
Will produce cash flows forever?
Will have to be torn down in 20 years? Assume that the site will be worth $5 million
at the time of demolition costs. (The $5 million includes 20 years’ inflation.)
Now calculate the real discount rate corresponding to the 10 percent nominal rate. Redo the
calculations for part (a) and (b) using real cash flows. (Your answers should not change.)
a.
First, with nominal cash flows:
The nominal cash flows form a growing perpetuity at the rate of inflation, 4%. Thus,
the cash flow in one year will be $416,000 and:
b.
PV = $416,000/(0.10 – 0.04) = $6,933,333
The nominal cash flows form a growing annuity for 20 years, with an additional
payment of $5 million at year 20:
1
1
( 1 + g)t $5,000 ,000
PV = C1
−
×
+
( 1 + r)t
( 1 + r)t
(r-g) (r − g)
1
1
( 1.04 ) 20 $5,000 ,000
= $ 416 ,000
−
×
+
10
10
( 1. ) 20
10
( 1. )20
10
( 0. -0.04 ) ( 0. -0.04 )
=$5,418,389
Second, with real cash flows:
a. Here, the real cash flows are $400,000 per year in perpetuity, and we can find the real
rate (r) by solving the following equation:
b.
(1 + 0.10) = (1 + r)(1 + 0.04) ⇒ r = 0.05769 = 5.769%
PV = $400,000/0.057692 = $6,933,333
Now, the real cash flows are $400,000 per year for 20 years and $5 million (nominal)
in 20 years. In real terms, the $5 million dollar payment is:
$5,000,000/(1.04)20 = $2,281,935
Thus, the present value of the project is:
$ 2 ,281,935
1
1
PV = $ 400 ,000 ×
−
+
= $5,418,510
20
20
( 0.05769 ) ( 0.05769 )( 1.05769 ) ( 1.05769 )
[As noted in the statement of the problem, the answers agree, to within rounding errors.]
N=
I=
20
5.7692
Cpt. PV = 5,418,389
Pmt =
21.
400,000
FV = 2,281,935
Vernal Pool, a self-employed herpetologist, wants to put aside a fixed fraction of her annual
income as savings for retirement. Ms. Pool is now 40 years old and makes $40,000 a year.
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Page 18
19. She expects her income to increase by 2 percentage points over inflation (e. g., 4 percent
inflation means a 6 percent increase in income). She wants to accumulate $500,000 in real
terms to retire at age 70. What fraction of her income does she need to set aside? Assume
her retirement funds are conservatively invested at an expected real rate of return of 5
percent a year. Ignore taxes.
Let x be the fraction of Ms. Pool’s salary to be set aside each year. At any point in the
future, t, her real income will be:
($40,000)(1 + 0.02) t
The real amount saved each year will be:
(x)($40,000)(1 + 0.02) t
The present value of this amount is:
( x )( $40,000)(1 + 0.02 ) t
(1 + 0.05) t
Ms. Pool wants to have $500,000, in real terms, 30 years from now. The present value of
this amount (at a real rate of 5 percent) is:
$500,000/(1 + 0.05)30
Thus:
30
( x )( $40,000)(1.02)
$500,000
=∑
30
(1.05)
(1.05) t
t =1
30
$500,000
( $40,000)(1.02)
= ( x )∑
30
(1.05)
(1.05) t
t =1
t
t
$115,688.72 = (x)($790,012.82)
x = 0.146
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Page 19
20. 22.
You own a pipeline which will generate a $2 million cash flow over the coming year. The
pipeline’s operating costs are negligible, and it is expected to last for a very long time.
Unfortunately, the volume of oil shipped is declining, and cash flows are expected to decline
by 4 percent per year. The discount rate is 10 percent.
a.
b.
What is the PV of the pipeline’s cash flows if its cash flows are assumed to last
forever?
What is the PV of the cash flows if the pipeline is scrapped after 20 years?
a.
PV =
b.
This calls for the growing perpetuity formula with a negative growth rate
(g = –0.04):
$ 2 million
$ 2 million
=
= $14.29 million
0. − ( −0.04 )
10
0.
14
The pipeline’s value at year 20 (i.e., at t = 20), assuming its cash flows last
forever, is:
PV20 =
C 21
C ( 1 + g) 20
= 1
r −g
r −g
With C1 = $2 million, g = –0.04, and r = 0.10:
PV20 =
($ 2 million) ×( 1 − 0.04 )20
$0.884 million
=
= $ 6.314 million
0.
14
0.
14
Next, we convert this amount to PV today, and subtract it from the answer to Part
(a):
PV = $14.29 million −
$ 6.314 million
= $13.35 million
( 1. )20
10
Most of these problems and part of the solutions are from Chapter 3 in Principles of
Corporate Finance by Brealey, Myers, and Allen 8th edition. Part of the solutions were
generated by Dan Ervin
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