• Study Resource
  • Explore
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
First Industrial Realty Trust
First Industrial Realty Trust

Telecommunication networks
Telecommunication networks

Savings and Investing
Savings and Investing

... is called the rate of return or yield  Interest rates are usually based on one year time periods  They can be given on other periods such as daily, weekly, monthly  Usually, the more times interest is paid, the greater yield it will return  Simple interest is calculated only on the principal amo ...
1.The role of Investor Bankers and the concept of Collateralized
1.The role of Investor Bankers and the concept of Collateralized

Fundamentals of Investing Chapter Fifteen
Fundamentals of Investing Chapter Fifteen

Chapter 10
Chapter 10

... • Answer. If Zapata borrows an additional Mex$ 15,000 (in millions) and uses these funds to pay a dividend to its parent, its liabilities will rise by Mex$ 15,000 and its equity will fall by the same amount. With the added peso liabilities, its exposure will fall by Mex$ 15,000 or $1.875 million re ...
Name - MrsTolensClass
Name - MrsTolensClass

... a savings account that earns 4% interest. Use the simple interest formula I = Prt, where I is the interest on an investment of P dollars at an interest rate r for t years. a. Which variable should you solve for to find the amount of money you need to invest to earn the $50 in interest? ...
AP Calculus AB - Van Buren Public Schools
AP Calculus AB - Van Buren Public Schools

Cotton Electric Charitable Foundation, Inc
Cotton Electric Charitable Foundation, Inc

File - Mustafa Hassan
File - Mustafa Hassan

PROBLEM SET 2 Solutions 14.02 Principles of Macroeconomics February 23, 2005
PROBLEM SET 2 Solutions 14.02 Principles of Macroeconomics February 23, 2005

an alternative approach for teaching the interest
an alternative approach for teaching the interest

... expense is calculated by multiplying the carrying value for an interest payment period by the constant market interest rate, resulting in a varying interest expense each payment period. Application of this method meets the requirement for a constant interest rate to be used over a bond's life. It is ...
Corporate Finance Chap 1
Corporate Finance Chap 1

... achieving financial goals by developing and implementing a corporate "game plan." Financial Planning do NOT focus on one aspect or process. It is a series of processes that culminates into end-results which are likely to be achieved in the long run. The process may require many adjustments as econom ...
TUGAS FINANCIAL MANAGEMENT Fery Purwa Ginanjar Eksekutif
TUGAS FINANCIAL MANAGEMENT Fery Purwa Ginanjar Eksekutif

... Corporation must decide whether to go ahead and develop the deposit. The most costeffective method of mining gold is sulfuric acid extraction, a process that could result in environmental damage. Before proceeding with the extraction, CTC must spend $900,000 for new mining equipment and pay $165,000 ...
CommonSenseEconomics
CommonSenseEconomics

5 - Blackwell Publishing
5 - Blackwell Publishing

... the intrinsic value of an asset a time zero; CFt is the expected future cash flow at the end of year t, k is the appropriate required rate of return; n is the remaining term to maturity, and t is the time period. The model’s three key inputs are the: (1) expected cash flows (returns) generated by th ...
Introduction to Risk and Return (Chapter 5)
Introduction to Risk and Return (Chapter 5)

... relationship between risk and return in US capital markets. If there is one, then it needs to be taken into account in portfolio construction. To do this, we need to define what we mean by return and what we mean by risk. Let’s take the notion of return. This is easiest to do when discussing a risk- ...
Quiz 5 Answers
Quiz 5 Answers

... 2. Targeting the price of money (more precisely the price of reserves, commonly known as the "federal funds rate"). Through the fractional reserve requirement and the money multiplier, a higher amount of reserves implies a higher amount of money. If it costs more to banks to borrow reserves in order ...
14.02 Principles of Macroeconomics Problem Set 4 Fall 2005 ***Solutions***
14.02 Principles of Macroeconomics Problem Set 4 Fall 2005 ***Solutions***

Topic Note-3
Topic Note-3

... starting next year, the firm has the chance to invest $3 per share a year in developing a newly discovered geothermal steam source for electricity generation. Each investment is expected generate a perpetual 20 % return. However, the source will be fully developed by the fifth year. What will be the ...
CT Cengage PPT template
CT Cengage PPT template

Chapter 15
Chapter 15

Chapter 15 Valuation Analysis: Income Discounting, Cap Rates and
Chapter 15 Valuation Analysis: Income Discounting, Cap Rates and

ALGEBRA 2
ALGEBRA 2

... d. An independent bank offers her a loan for this car at 6.8% annual interest for 8 years. Does it make financial sense for her to take this loan instead? ...
[Int`lFinance]FinalPaper_KWAKJeeEun5
[Int`lFinance]FinalPaper_KWAKJeeEun5

< 1 ... 149 150 151 152 153 154 155 156 157 ... 178 >

Present value

In economics, present value, also known as present discounted value, is the value of an expected income stream determined as of the date of valuation. The present value is always less than or equal to the future value because money has interest-earning potential, a characteristic referred to as the time value of money, except during times of negative interest rates, when the present value will be greater than the future value. Time value can be described with the simplified phrase, “A dollar today is worth more than a dollar tomorrow”. Here, 'worth more' means that its value is greater. A dollar today is worth more than a dollar tomorrow because the dollar can be invested and earn a day's worth of interest, making the total accumulate to a value more than a dollar by tomorrow. Interest can be compared to rent. Just as rent is paid to a landlord by a tenant, without the ownership of the asset being transferred, interest is paid to a lender by a borrower who gains access to the money for a time before paying it back. By letting the borrower have access to the money, the lender has sacrificed the exchange value of this money, and is compensated for it in the form of interest. The initial amount of the borrowed funds (the present value) is less than the total amount of money paid to the lender.Present value calculations, and similarly future value calculations, are used to value loans, mortgages, annuities, sinking funds, perpetuities, bonds, and more. These calculations are used to make comparisons between cash flows that don’t occur at simultaneous times. The idea is much like algebra, where variable units must be consistent in order to compare or carry out addition and subtraction; time dates must be consistent in order to make comparisons between values or carry out simple calculations. When deciding between projects in which to invest, the choice can be made by comparing respective present values of such projects by means of discounting the expected income streams at the corresponding project interest rate, or rate of return. The project with the highest present value, i.e. that is most valuable today, should be chosen.
  • studyres.com © 2025
  • DMCA
  • Privacy
  • Terms
  • Report