Present value is where the value on a set date of a future payment is discounted to reflect the time value of money and other factors. This can also apply to a series of future payments. Present value calculations are commonly utilized in business and economics to provide a way to compare cash flows at different times. Present value can be described as the current worth of a future sum of money or stream of cash flows given a specified rate of return. (http://www.getobjects.com) Future cash flows
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FND154 W3 A1 Seastrand Professor Harrison December 21‚ 2012 1. Identify the differences between service and merchandising companies and explain the recording of purchases and sales under a perpetual inventory system. Merchandising companies sell a product to their customers. Grocery stores‚ clothing stores and booksellers are all examples of a merchandising company. Service companies provide a service to their customers. A landscape service‚ a masseuse and a CPA are all examples of a
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Just-In-Time Inventory System Just-in-time (JIT) inventory systems greatly reduce inventories. The philosophy of a JIT system is that materials should arrive exactly as they are needed in the production process. Many large companies use this type of inventory system as opposed to warehousing large amounts of inventory at all times. The system requires careful planning and scheduling‚ and extensive cooperation between suppliers and manufacturers is needed throughout the production process. Advantages:
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1 Hedging Strategies Using Futures Chapter 3 2 Long & Short Hedges • A long futures hedge is appropriate when you know you will purchase an asset in the future and want to lock in the price • A short futures hedge is appropriate when you know you will sell an asset in the future & want to lock in the price • A short hedge is also appropriate if you currently own the asset and want to be protected against price fluctuations 3 Arguments in Favor of Hedging • Companies should
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Opportunity cost is often to be determined when coming across decision-making. Throughout this essay‚ the term ‘opportunity cost’ will be reviewed in the case of pregnant women staying home during their maternity leave. The essay will be divided into 3 part. Firstly‚ concept of opportunity cost will be defined and explained with daily examples. It will then go on investigating both the opportunity cost and benefits of mothers staying home during their maternal leave. Finally‚ several advices will
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TIME VALUE Time Value • Interest Rates • Compounding • Discounting • Effective Rates • Annuities • Perpetuities 2 Interest Rates • Types – Bank rate vs. Prime rate – Mortgage rates – Deposit‚ Loan‚ Credit rates • Movement – Demand / Supply – Inflation/ Deflation – Government intervention 3 Main Components 1. Real 2. Inflation 3. Risk *Note: - Risk Free (Rf) = Real + Inflation - Nominal = Rf + Risk Premium 4 Risk Free & Real Rate • Risk Free (Rf) = Real +
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Fall 2012 Finc 414 (01) Assignment no. : One Time value of money Please solve the attached problems Date of Submission: Monday 10/09/2012 Please: No Late Submission Solved By Sherin Ezant 1. Accumulating a growing future sum A retirement home at Deer Trail Estates now costs $ 185‚000. Inflation is expected to cause this price to increase at 6% per year over the 20 years before G.L. Donovan retires. How
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out new ways to keep pace with the more demanding markets. Future marketing will lead by the big ideas and innovations. Consumer will become knowledgeable about the products and their rights. It will change the consumer behavior and their patterns of consumption. Thousands of researches are conducting by marketing researchers to predict future market and develop the new ways of marketing. In this assignment we tried to forecast the future marketing strategies and few ideas based on our perception
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The value of Time The value of time is limitless‚ it cannot be measured. The value of time arises from the fact that human life is short but he has to do a lot of works within the short span of time. Each work requires some time. If the work is not finished in time‚ it may not be finished at all. That explains why time is so valuable and it should not be lost for nothing. Tome goes on like the tide of a river and it never waits for anybody. Lost time can never be found again. Misuse of time
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Find a journal article online about just-in-time inventory systems. In the subject line of your post‚ include the title of the article that you read. Post a link to that article with your initial post‚ and provide a summary and a reaction to the article. The summary should be approximately 250 words‚ and the reaction should be approximately 150 words. The summary should describe the major points of the article‚ and the reaction should demonstrate your interpretation of the article and how you can
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