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

Paper Helper has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!

Essays

Essay Writing Services

At Paper Helper, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.

Admissions

Admission Papers

You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!

Editing

Editing and Proofreading

Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.

Coursework

Technical papers

We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.

Coursework

College Essay Writing

If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!

Coursework

Quality Assignment/Homework Help

We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.