CHAPTER 5 Net Present Value and Other Investment Criteria Answers to Problem Sets 1. a. A = 3 years‚ B = 2 years‚ C = 3 years b. B c. A‚ B‚ and C d. B and C (NPVB = $3‚378; NPVC = $2‚405) e. True f. It will accept no negative-NPV projects but will turn down some with positive NPVs. A project can have positive NPV if all future cash flows are considered but still do not meet the stated cutoff period. 2. Given the cash flows C0‚ C1‚ . . . ‚ CT
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A Life Without Technology There’s no doubt that technology brings with it some scary things. The scariest of them all is of the uncertainty. Human beings are creatures of habit and any introduction of anything new typically raises an eyebrow (at least) or pitchforks (more often). It’s a somewhat common theme that is tiresome to me‚ but one that rages with debate throughout the times. If you study history‚ many of the same arguments that are made as to why the Internet is ruining our society and
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Life Without Technology If someone told me that I would have to be technology-free for 24 hours I would probably have asked them for a tranquilizer so I could sleep through the horrid day. From the moment my alarm clock goes off in the morning to the time I set it at night I am using some sort of technology. I couldn’t even eat lunch at school without the help of those little machines that take our meal plans. Last week I did my best and tried as hard as I could to be free from technology. Obviously
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Learning hardly takes place without teaching. Also‚ it is impossible to imagine teaching without technology especially in 21st century onwards. Along with technological development the way of teaching and learning is being changed. Because‚ people especially youth remained bond to technological devices such as smart phones
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liability. Investors in corporations have limited liability. They can lose their investment‚ but no more. Chapter 2 How to calculate Present values Question 6: Perpetuities An investment costs $1‚548 and pays $138 in perpetuity. If the interest rate is 9%‚ what is the NPV? Answer NPV = −1‚548 + 138/.09 = −14.67 (cost today plus the present value of the perpetuity). Question 7: Growing perpetuities A common stock will pay a cash dividend of $4 next year. After that‚ the dividends
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1. If you deposit $10‚000 in a bank account that pays 10 percent interest annually‚ how much money will be in your account after 5 years? 2. What is the present value of a security that promises to pay you $5‚000 in 20 years? Assume that you can earn 7 percent if you were to invest in other securities of equal risk. 3. If you deposit money today into an account that pays 6.5 percent interest‚ how long will it take for you to double your money? 4. Your parents are planning to retire in 18
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In this modern age‚ technology is everywhere. As human beings‚ we thrive on technology. We feed off of it or more like it feeds off of us. It is the Edward Cullen to us Bella Swans. What if one day‚ technology just vanished into thin air? Would we survive? Yes we can if Swan survived in New Moon without Cullen‚ we can survive without technology. Of course she went a bit suicidal‚ but she survived nonetheless so let’s not think about that. We have become too dependent on our “Edward Cullen”. He
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University School of Mass Communication‚ Guru Gobind Singh Indraprastha University (GGSIPU) The importance of technology in the modern world can hardly be overstated . One way or the other‚ technology affects almost everything we do today and it also influences most of our plans for the future . In our everyday life‚ we owe mass media and technology for our modern way of life. When we use a cellular phone to call our friend‚ watch a DVD on television‚ listen to songs recorded on a CD‚ listen to
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feel a day without using any technology? Living without technology will be totally impossible as this has become every day’s application as more and more people are gaining knowledge on how to make use of the communication tools to improve their ways of living and staying informed on the current technology to avoid being left behind. New technologies are being developed daily which shows that the industry will continue to grow and expand. People will continue using these technologies to improve their
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$34‚229.07 Therefore the total cost today of your children’s college expense will be the addition of the 2 = $72‚326.88 This is the present value of my annual savings‚ which are an annuity‚ so to get the amount I am supposed to save each year would be: PV=72‚326.88 N=15 I=5.5 CPT PMT = 7‚205.6 57. Calculating Annuity Values: Bilbo Baggins wants to save money to meet three objectives. First‚ he would like to be able to retire 30 years from now with retirement
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