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    The Time Value of Money

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    What interest rate are you charging your "friend"? If you make your first deposit at the end of this year, and you would like your account to reach $20,000 when the final deposit is made, what will be the amount of your deposits? If the cost of common equity for the firm is 20 percent, the cost of preferred stock is 12 percent, and the before-tax cost of debt is 10 percent, what is Jower's cost of capital? What is the effective annualized cost of forgoing the discount? Calculate the project's NPV.

    1. You lend a friend $15,000, for which your friend will repay you $37,313 at the end of five years. What interest rate are you charging your "friend"? 2. You plan to buy some property in Florida five years from today. To do this, you estimate that you will need $20,000 at that time for the purchase. You would like to accu

    Time value of money

    Please assist with the following homework: 1.Calculate the future value of the following a, $500 invested for 5 yrs at a 5 % interest rate b. $700 invested for 3 years at a 2 % interest rate c. $1200 if invested for 7 years at an 11 % interest rate d. $400 if invested for 10 years with an 0 % interest rate CALCULATE THE

    Research on GM Automotive Industry

    I would like to learn something about GM automotive industry. Could you provide some examples? 1. A brief history of the industry. An industry overview.

    Business Ethics: Company Audits

    During the audit of a closely held corporation the junior member of the audit team discovers an anomaly in the books which suggests that certain corporate officials may be laundering overseas money in the company's international sales operation. The junior auditor suspects that the senior member of the team is aware of the issu

    Interest Rate and Velocity

    1) Your college has agreed to give you a $10,000 tuition loan. As part of the agreement, you must repay $12,600 at the end of the 3-year period. What interest rate is the college charging? 2) A country's gross domestic product (GDP) is $20 billion and its money supply (MS) is $5 billion. a) What is the country's velocity

    Years for an Amount Invested to Grow a Particular Value

    How many years will the following take? a. $500 to grow to $1,039.50 if invested at 5 percent compounded annually. b. $35 to grow to $53.87 if invested at 9 percent compounded annually. c. $100 to grow to $298.60 if invested at 20 percent compounded annually d. $53 to grow to $78.76 if invested at 2 percent compounde

    Predict the effects on the equilibrium levels of aggregate output

    1. For each of the following, predict the effects on the equilibrium levels of aggregate output (Y) and the interest rate ( r ): A) During 2005, the Federal Reserve was tightening monetary policy in an attempt to slow the economy. The Congress passed a substantial cut in the individual income tax at the same time. B) D

    Finance - The present value of a single sum of $100 to be received in 10 years and discounted at a annual 12% rate on a semi-annual basis. The best way to compare two sums to be received at different times in the future. Factor to use when computing the present value of a series of rent payments.

    2. The present value of a single sum of $100 to be received in 10 years and discounted at a annual 12% rate on a semi-annual basis is: a. $32.19 b. $31.18 c. $100 d. $310.58 3. The best way to compare two sums to be received at different times in the future is to compute: a. The present value of each sum. b. The futur

    10-Year return for the S&P/5-Year S&P small cap 600 return

    As of July 16, 2007 the 10-year return for the S&P was 9.28% (Accessed from http://www.barra.com/Research/SummaryReturns.aspx) Question #1. How much will you have if you put $100 into an account each month for 10 years starting today if you earn the 10-Year S&P 500 return? (show your work. If you use Excel or a financial c

    Money and banking

    Figure 1 in the chapter shows the estimated real and nominal rates for three-month Treasury bills. Go to http://www.martincapital.com/charts.htm Click on "interest rates and yields" then on "Nominal versus Real Market Rates." a. Compare the three-month real rate to the long-term real rate. Which is greater? b. Compare the sh

    Economics for Managers

    1. If a firm used a combination of inputs that was to the left of the isocost line, it would indicate that A. It is exceeding its budget. B. It is not spending all of its budget. C. It is operating at its optimal point because it is saving money. D. None of the above. 2. The Learning Curve A. Is really no different

    IS/LM Rule Output

    1. Assume that in a certain economy the LM curve is given by Y=2000r-2000+2(M/P), and the IS curve is given by Y=8000-2000r+, where  is a shock that is equal to 200 half of the time and -200 half of the time. The price level is fixed at P=1 for simplicity. The natural output level is 4000. The government wants to keep outp

    INVESTMENT OF $50,000

    Suppose you have invested $50,000 in the following four stocks: Security Amount Invested Beta Stock A $10,000 0.7 Stock B $15,000 1.2 Stock C $12,

    Return on investment and savings

    1) A building is purchased with a principal amount to pay down of $108000. The payments will be made in 20 EQUAL, end of year (not monthly!) installments. What are the equal installments if the annual interest rate is 10%? 2) Your job pays only once per year on December 31 - you just received your salary of $50,000 and will

    Engineering Economics

    1) The time it would take for money to double at a simple interest rate of 10% per year is closest to: A) 5 Years B) 7 Years C) 10 Years D) 12 Years 2) At a compound interest rate of 10% per year, $10,000 one year ago is equivalent to how much 1 year from now? A) $8264 B) $9091 C) $11,000 D) $12,000 3) In most engine

    The Keynesian Cross Model

    This is a power-point presentation that demonstrates the IS/LM MODEL as outlined in Mankiw's intermediate macroeconomics text. The slides build the model up one step at a time and explain how the relationship between the Keynesian cross, the money market and the IS/LM model.

    Graphing a production possibilities frontier

    I need a graph of the production possibilities frontier for the following question: American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons of grain a year, while a Japanese worker can produce 5 tons of grain a year. Assume that each country has 100 million workers.

    total growth in the investment account increases over time

    Two plans have been proposed for accumulating money for capital projects at Thunder Bay Lighting. One idea is to put aside $10000 per year, independent of growth. The second is to start with a smaller amount, $8000 per year, but to increase this in proportion to the expected company growth. The money will accumulate interest at

    Economics of internet

    A Congressional staffer calls you on the phone for advice. Her boss may propose a law where sending an email costs 5 cents for every email address included in the message. The government does not get the money; it goes to the recipient(s) of the email. That is, each person has an email credit account. For every email sent, 5

    Basic economic questions

    1. Explain why time lags are a problem for the effective implementation of fiscal policy. 2. Explain what is meant by a structural deficit and how it would differ from a cyclical deficit. 3. List and discuss the functions of money. 4. Explain what is meant by a "fractional" reserve banking system. How d

    The Concept of Velocity of Money

    An increase in the velocity of money appears inflationary, as it can make prices rise. Even though we may be experiencing deflation, it could be masked by an increase in the velocity of money.

    Velocity of Money

    What factors beside transaction processing speed affect the velocity of money? Is there a practical limit on the velocity of money? what economic impact will result from nearing or reaching this limit? Are there economic benefits to retarding the velocity of money under certain circumstances? How should busines

    Microeconomics problem

    Accounting Versus Economic Profit (Explicit and Implicit Costs) Exhibit 1 represents the annual income statement of Joe's Clothing Store. Joe worked full time in the store and invested $30,000 to buy the store and stock it with merchandise. He recently turned down an offer of a salaried position paying $10,000 per y

    Becker Theorem Activity Perspective

    Using a "time + money" activity perspective, what are some of the changes you might anticipate from each of the following trends: a. The impact on Internet usage patterns as more of the world's Internet users coming from lower-income developing countries such as India, China, and Brazil? b.The impact of rising broadband ad

    Internet economics

    Using a "time + money" activity perspective, what are some of the changes you might anticipate from each of the following trends: a.The impact on Internet usage patterns as more of the world's Internet users coming from lower-income developing countries such as India, China, and Brazil? b.The impact of rising broadband ado

    Macroeconomic study of Monetary Policy

    In reference to "monetary policy," 1. Please describe the monetary system of the United States including how it is flexible in relation to economic conditions, and how the US Federal Reserve System changes the supply of money. 2. How does the supply of money impact the economy? These are topics that are touched on