we should find the PV of both options‚ and compare them. Since we are purchasing the car‚ the lowest PV is the best option. The PV of the leasing is simply the PV of the lease payments‚ plus the $99. The interest rate we would use for the leasing option is the same as the interest rate of the loan. The PV of leasing is: Enter | 36 | 7/12=.5833 | | -$450 | 0 | | | N | | | I/Y | | | PV | | | PMT | | | FV | | Solve for | | | $14‚573.91 | | | PV = $99 + $450{1 – [1 /
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` RFP Number: 11-011-C1 Project Title: Project Scheduling Assistance Name and Address of Proposer: Michael H. Azma‚ Managing Partner Genesis Technology Services Group LLC. 3311 Starline Dr. Rancho Palos Verdes‚ CA‚ 90275 Phone: (310) 514-2000‚ Fax: (310) 424-2990 Email: MAzma@GenesisGroupLLC.net In Collaboration with: Professor Ardavan Asef-Vaziri Department of Systems and Operations Management‚ College of Business and Economics‚ California State University 18111 Nordhoff
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Times per Year Annual Compounding FVn = PV( 1 + i )n 2 FV 1 i PV = Present Value of a Lump Sum. (PVIFi‚n) -n Future Value of an Annuity. (FVIFAi‚n) FVAn = CF 4 Present Value of an Annuity. (PVIFAi‚n) 1 - ( 1 + i )-n PVAn = CF i 5 Present Value of Perpetuity. (PVA ) 6 Effective Annual Rate given the APR. 7 The length of time required for a PV to grow to a FV. 8 The APR required for a PV to grow to a FV. 9 Present Value of a
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= .899 3. PV = 374/(1.09)9 = 172.20 4. PV = 432/1.15 + 137/(1.152) + 797/(1.153) = 376 + 104 + 524 = $1‚003 5. FV = 100*1.158 = $305.90 6. NPV = -1‚548 + 138/.09 = -14.67 (cost today plus the present value of the perpetuity) 7. PV = 4/(.14-.04) = $40 8. a. PV = 1/.10 = $10 b. Since the perpetuity will be worth $10 in year 7‚ and since that is roughly double the present value‚ the approximate PV equals $5. PV = (1 / .10)/(1.10)7 =
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2. 125/139 = .899 3. PV = 374/(1.09)9 = 172.20 4. PV = 432/1.15 + 137/(1.152) + 797/(1.153) = 376 + 104 + 524 = $1‚003 5. FV = 100*1.158 = $305.90 6. NPV = -1‚548 + 138/.09 = -14.67 (cost today plus the present value of the perpetuity) 7. PV = 4/(.14-.04) = $40 8. a. PV = 1/.10 = $10 b. Since the perpetuity will be worth $10 in year 7‚ and since that is roughly double the present value‚ the approximate PV equals $5. PV = (1 / .10)/(1.10)7 = 10/2= $5 (approximately)
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1. PV = FV x [ 1 ÷ (1 + i)n ] PV = $11mil x [ 1 ÷ (1 + 0.06)2 ] PV = $11mil x [ 1 ÷ (1.06)2 ] PV = $11mil x [ 1 ÷ 1.1236 ] PV = $11mil x [ 0.88999644] ← PV factor PV = $9‚789‚960.80 If I were chose between alternative 2 and the first $10min alternative I would go with alternative 1. It reflects a bigger present value than alternative with an opportunity interest rate of 6%. PV = FV x [ 1 ÷ (1 + i)n ] PV = $11mil x [ 1 ÷ (1 + 0.12)2 ] PV = $11mil x [ 1 ÷ (1.12)2 ] PV = $11mil
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NCCT Promise for the Best Projects NCCT‚ Promise for the Best Projects EMBEDDED PROJECTS IEEE 2012-13 EMBEDDED SYSTEMS - MICROCONTROLLERS | VLSI | DSP | POWER ELECTRONICS | MATLAB PROJECTS 2012-13 EMBEDDED PROJECTS IEEE 2012-13 E M BE DDE D SYSTEMS MICROCONTROLLERS * POWER ELECTRONICS * MATLAB PROJECTS 2012-13 IEEE Domains and Non IEEE Domains enclosed IEEE Domains and Non IEEE Domains enclosed EMBEDDED / IEEE PROJECT DOMAINS Automatic Control * Biomedical Engineering * Broadcasting
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CHAPTER 3 How to Calculate Present Values Answers to Practice Questions 1. a. PV = $100 0.905 = $90.50 b. PV = $100 0.295 = $29.50 c. PV = $100 0.035 = $ 3.50 d. PV = $100 0.893 = $89.30 PV = $100 0.797 = $79.70 PV = $100 0.712 = $71.20 PV = $89.30 + $79.70 + $71.20 = $240.20 2. a. PV = $100 4.279 = $427.90 b. PV = $100 4.580 = $458.00 c. We can think of cash flows in this problem as being the difference between two separate streams
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1. How does Ben’s age affect his decision to get an MBA? This document is the property of Management Development Institute‚ Gurgaon. Ben passed out from college six years ago with a finance undergraduate degree. He is 28 years of age and his goal I to become an investment banker. Ben’s age can affect his decision to get an MBA due to the following reasons: o His age determines the time period wherein he can be productively employed. The time window available to Ben keeps on reducing with age
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APPLIED OPERATIONAL RESEARCH FOR MANAGEMENT NOTES 1 ANNA UNIVERSITY CHENNAI UNIT I INTRODUCTION TO LINEAR PROGRAMMING (LP) INTRODUCTION Operations Research (OR) (a term coined by McClosky and Trefthen in 1940) was a technique that evolved during World War II to effectively use the limited military resources and yet achieve the best possible results in military operations. In essence you can state that OR is a technique that helps achieve best (optimum) results under the given set of limited
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