Q: How can the Present-Worth Comparison be done?
A: The present worth method of comparison will diminish the cash flows of every choice to time zero by…
Q: What is the Future Value?
A: Future Value: It represents the future worth of the present amount and can be estimated by the…
Q: What is par value?
A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…
Q: Can you make me a comparison and contrast of present value and future value?
A: Financial Accounting:- Financial accounting includes recording, summarizing and reporting a…
Q: What is the incremental analysis?
A:
Q: What is horizon value?
A: Horizon value is the value of the project or the security at the end of a specified future date. The…
Q: What is the significance of the Value at Risk (VaR) method?
A: The question is based on the concept of Value at Risk (VaR). VaR is a statistical measure of risk in…
Q: Explain the term Present Value of Perpetuities with an example?
A: Present value is the current value of a cash flow that can be occurred in future. Perpetuity is an…
Q: How did they calculate the present value?
A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…
Q: what is the present value
A: The time value of money means that the amount of money received in the present period will have…
Q: What is the concept of present value? What is discounting?
A: Present value means value of future cash flows in todays terms.
Q: What is fundamental value or price?
A: Fundamental value is a measure of what an asset's worth. This gauge is acquired by methods for an…
Q: What is option?
A: Options are the derivatives contract that gives investor discretion to sell or buy the assets like…
Q: What is future value, FV?
A: Future Value: The future value is the value of the present amount compounded at an interest rate…
Q: Define net realization value?
A: Net realizable value means the amount that could be received after deducted all incidental expenses…
Q: a present value is converted to a future value through compounding, explain this to me.
A: Present value (PV) is the amount of money one is having today. Future value (FV) is how much money…
Q: How do you calculate present value?
A: Present value:Present value (PV) refers to the current value of future money.
Q: What is the present value
A: Present Value can be calculated using the following formula: Present Value = Annual cash flow /…
Q: What is discounting and compounding? What is the difference between them?
A: We need to use the equation of time value of money to explain the concept of discounting and…
Q: compare Future Value and Present Value?
A: The comparison between present value and future value is as follows:
Q: What is the single-payment present-worth factor?
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Explain present value, PV
A: PV is an abbreviation for Present Value. It helps us to ascertain the worth of money today which…
Q: What is the definition of “actuarial present value”?
A: Accumulated Benefit Obligation: It is an inexact rate of a company's pension plan liability towards…
Q: Where does the discount rate from present value came from? How to solve it?
A: In finance, a reduction rate is that the rate of come wont to discount future money flows back to…
Q: which investment is preferable?
A: The present value is the present worth of the amount that will be paid or received at present.
Q: Explain the Compound or Future Value?
A: Future value: Future value (FV) is the esteem of an existing property at a future time, based on an…
Q: What is net present value (NPV) method?
A: Capital budgeting can be defined as the decision making process employed by businesses wherein, a…
Q: The present value that must be invested
A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as…
Q: Define Present value and future value. If present value and future value are equal what is the rate?…
A: The time value of money is an important concept in finance which states that the money a person…
Q: What would be the value the payment?
A: In this question, we will use the excel function for calculating the maturity value of loan from the…
Q: what is a provable intrinsic value? can you give a example
A: Intrinsic value of a stock is its fundamental value. This is calculated by taking in to…
Q: What is market Value added? What is economic value added? What is the difference between what each…
A: Market value added is the amount of wealth that the company is able to create for its stakeholders.…
Q: Present Value versus Future Value
A: Present value is the amount at time "t=0". This is the value of an investment today or in present…
Q: Which one of the following is a current asset?
A: Current assets are all the assets of a company that are expected to be sold or used as a result of…
Q: . What is its present value?
A: Introduction: Compound interest can be defined as the interest on either a loan or a deposit which…
Q: How does compounded interest work?
A: compound interest : it is the interest on loan calculated based on principal and interest.
Q: what is the total value
A: Introduction: The term perpetuity is also an annuity wherein the series of payments would continue…
Q: Explain Discounted Present Value Techniques?
A: Capital budgeting is the process of allocating the resources of the company in long term investment…
Q: What is value at risk, VaR?
A: Value at Risk (VaR) is a financial metric that estimates the risk of an investment. More…
Q: How does discounting, as used in determining present value, relate to compounding, as used in…
A: Future value equals the value of a deposit made today at a future date. Present value equals the…
Q: What is original maturity?
A: The maturity period of a security is the time period that represents a securities life. It is the…
Q: What is notional value?
A: Notional value is used to value the underlying asset. In simple words it tells how much of value a…
Q: What is net present value? Can it ever be negative? Explain.
A: Net present value: Net present value is a technique used in capital budgeting to see the project is…
Q: What is the present value? %24
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
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- What is the future value of $2,000 invested at the beginning of each year for six years at 4%? a. $13,796.59 Ob.$13,286.11 C. $14,426.67 Od. $14,020.33What will be the future value of $5 000 invested for six years at 8% per annum compounded quarterly? Select one: a. $6 532.81 b. $7 923.37 c. $7 934.37 d. $8 042.19What will be the future value of $5 000 invested for six years at 8% per annum compounded annually? Select one: a. $7 543.46 b. $7 923.37 c. $7 934.37 d. $6 532.81
- The future value of $7,000 deposited today and compounded semiannually at an 9% annual interest rate for four years is a.$9,955. b.$9,520. c.$8,100. d.$7,920Present value formula determine the amount invested now or the present value needed desired accumulatd amount 23000 after 8 years invested in an account with 4 percent interest compounded semiannuallyCompute the future value of $2,000 compounded annually for 10 years at 10 percent. Oa. $5,187 48 O b. $3,880.24 O c. $1,480.24 O d. $4,080.24
- What is the future value of a lump sum of $18,443 invested for 15 years at 3.2 percent compounded annually? $29,581.97 $348,092.67 $29,786.22 $400,306.57Principal of 5000 OMR is invested for 5 years compounded quarterly Find the interest rate required to produce a future 6331.510 OMR. Select one: а. 0.0475% b. 4.75% С. 4.835% d. 47.5% е. None of the aboveExercises:1. What is the principal amount if the amount of interest at the end of 2 ½ year is P 4, 500.00 for asimple interest of 6% per annum? Given: Required: Solution:
- A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at an interest rate of 12% compounded annually A.$2,402 B.$4,944 C.$4,804 D.$4,111Find the amount to which $1,000 will mature in 3.5 years at 7 ¾% p.a.9. An investment of P2, 500 is made at the end of each year with interest of 2. 5% compounded annualy. a. Determine the equal payment series coumpound amount factor after 8 years b. Determine the total amount of the investment after 8 years. c. How long (in years) will it take for the investment to amount P59, 865. 00?