is contended on the basis of the time value of money by default omission to withhold payment of K11‚ 123.33N on the claim lodged for payment with the Zambia Army in 1992. 2. Sir‚ in your reply dated 4th December 2012 Para 2 and 3 is acknowledged and further noted that‚ the formula used to arrive at the said amount paid by the pension fund is correct both under Cap 106 and 206 of the Laws of Zambia. Therefore suggests that the anomaly in the loss of value of the compensation benefit overtime
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and make sacrifices later than sooner‚ money‚ which provides the option to buy benefits‚ is likewise preferred sooner to later. If an individual prefers money sooner than later‚ then he/she values a dollar today more than a dollar tomorrow or a dollar in one year from now. A dollar today is worth a dollar today: therefore‚ a dollar next year must be worth less than a dollar today since it is less preferable/valuable. In other words‚ the same amount of money will be more or less valuable depending
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by the fund The acquisition refers to the finance decision Efficient use of funds refers to the investment decision A major aspect of corporate finance is the creation and determination of value Objective of Financial Management- Maximize shareholder wealth is the main goal—to maximize the market value of the firm 3 Main Decision Areas of Financial Manager to Achieve Maximization: 1. Investment Decision- What long-term investments should the firm take? 2. Financing Decision- How can the
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additional return. At some point‚ we have all saved some money. Why have we done this? The answer is simple: to expand our future consumption opportunities-for example‚ save for a house‚ a car‚ or retirement. We are able to invest those savings and earn a return on our dollars because some people would rather forgo future consumption opportunities to consumer now-maybe they’re borrowing money to open a new business or a company is borrowing money to build a new plant. Assuming there are a lot of different
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Probability theory is applied to situations where uncertainty exists. These situations include 1. The characterization of traffic at the intersection US 460 and Peppers Ferry Road (i.e.‚ the number of cars that cross the intersection as a function of time) 2. The prediction of the weather in Blacksburg 3. The number of students traversing the Drill Field between 8:50 and 9:00 on Mondays 4. The thermally induced (Brownian) motion of molecules in a (a) copper wire (b) a JFET amplifier 3)
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stream movies and TV episodes to members ’ TVs from Netflix. Netflix entered the rental entertainment industry at a time where Blockbuster was king and renting movies required the consumers to drive to the store. However‚ Netflix realized that through innovation there was a much more efficient and cheaper way to provide the same service than the typical brick-and-mortar companies of the time. Customers of Blockbuster and other store rental places were attracted to the new features (monthly subscription
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personal factors such as income‚ household size‚ age‚ and personal value. Economic factors that affect personal finance include global business activities‚ inflation‚ and interest rates. 2. For each of the following situations‚ indicate if the person would tend to “suffer” or tend to “benefit” from inflation. A person with money in a savings account suffer A person who is borrowing money. benefit A person who is lending money. suffer A person receiving a fixed income amount. suffer 3. Listed
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equal to 50% of your final salary and payable for 20 years. Your earnings are assumed to grow at 2% annually‚ and you want the pension payments to grow at the same rate. 2.1 Time Value of Money It is a fact of life that $100 to be received after one year is worth less than the same amount today. The main reason is that money due in the future or locked in a fixed-term account cannot be spent right away. One would therefore expect to be compensated for postponed consumption. In addition‚ prices may
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interest paid or earned over a year’s time? Wrong Answer: the periodic rate Which of the following has the highest time value of money at the same time interest rate for the same number of payments Correct Answer: the future value or an annuity-due Which of the following would increase the present value of a single cash flow? Wrong Answer: a decrease in the cash flow You invest $1000 at 6% compounded annually and want to know how much money you will have in 5 years. What does the
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Question 1 (5 points) $50 today is worth MORE than $50 tomorrow. Your Answer Score Explanation True Correct 5.00 Correct. You understand Time value of money. False Total 5.00 / 5.00 Question Explanation We have assumed time value of money is positive. Question 2 (5 points) $100 invested for 10 years at 12% interest is worth more in FV terms than $200 invested for 10 years at 4% interest. Your Answer Score Explanation True Correct 5.00 Correct. You know the mechanics for calculating
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