Fin 3320 Practice Questions1 – Total Course 1. Your wealthy uncle has set up a special account that will give you $500‚000 on your 35th birthday. Assuming you are age 21 (thus 14 years from receiving this)‚ what is the present value of this gift if the appropriate discount rate is 8.0%? (Ch5) a. $170‚231 b. $282‚449 c. $442‚619 d. $191‚206 e. $734‚664 2. You need $10‚900 for the down payment on a new car. You presently have $5‚000 in savings for which you expect to earn 6% (annual rate‚ compounded
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Decline of Morals‚ Ethics‚ Values Raising the Standards Bobbi Yarbrough Western Governors University WGU Student ID# 000389221 Raising the Standards In recent years‚ it seems that America‚ has clearly become out of control when it comes to its young people committing crimes‚ the treatment of the elderly‚ defacing public property and all together out of control attitudes and non-accountability. There seems to have been more serious crimes committed by youth recently than there has
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be 13.487% and a Weighted Average Cost of Capital (WACC) to be at a value of 9.70%. Factoring in the WACC into our projections we found that if the demand maintains at an average rate the project will be at a positive Net Present Value of $5‚997‚505.31 with an IRR of 13.21%‚ a profitability index of 8.84‚ and an approximate payback period of 6.84 years. Please see Exhibits below for a snapshot of the capital budget and NPV values. This information seemed to be very promising for the project in
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Principles (GAAP). By using these concepts as the foundation‚ readers of financial statements and other accounting information do not need to make assumptions about what the numbers mean. For instance‚ the difference between reading that a truck has a value of $9000 on the balance sheet and understanding what that $9000 represents is huge. Can you turn around and sell the truck for $9000? If you had to buy the truck today‚ would you pay $9000? Or‚ perhaps the original purchase price of the truck was
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Running head: MORAL VALUE: THE DEATH PENALTY Moral Value: The Death Penalty Moral Value: The Death Penalty The death penalty is a moral value issue that has brought much controversy within society. It is morally justifiable to continue to practice the death penalty for convicted felons who are a threat to society. The death penalty is authorized in 37 states in the United States as well as by the U.S. Military. There are 13 states as well as the
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Part I A. Present Value with Discount rate of 7% = 15000/(1+7%) = 15000/1.07 = $14‚018.69 Present Value with Discount rate of 4% = 15000/(1+4%) = 15000/1.04 = $14‚423.08 B. Account A - Present Value with Discount rate of 6% = 6500/(1+6%) = 6500/1.06 = $6‚132.08 Account B - Present Value with Discount rate of 6% = 12600/(1+6%)^2 = 12600/1.1236 = $11‚213.96 C. Present Value of Gold Mine 7% = 4900000/1.07 + 61‚000‚000/(1.07)^2 + 85‚000‚000/(1.07)^3 = 45‚794‚392.52 + 61‚000‚000/1.1449 + 85
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Lesson 1 I. Understanding of the Philosophies ESSENTIALISM 1. No‚ because they aim to transmit the traditional moral values and intellectual knowledge that students need to become model citizens. 2. No‚ the model student is the one who shows mastery of the basic skills and that one who lives by traditional moral values. 3. No‚ they teach subject matter even if students are not interested. They are more subject matter-oriented than student-centered. 4. No‚ they need long academic
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Hertz purchases the fleet from GM for $325‚000‚ and Hertz is able to issue $200‚000 of five year‚ 8% debt in order to finance the project. All principal will be repaid in one balloon payment at the end of the fifth year. What is the Adjusted Present Value (APV) of the project? 17.1 a. The maximum price that Hertz should be willing to pay for the fleet of cars with all-equity funding is the price that makes the NPV of the transaction equal to zero. NPV = -Purchase Price + PV[(1- TC
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Table of Contents 1.1 Introduction 1.2 NET PRESENT VALUE (NPV) 1.3 ADVANTAGES OF NPV 1.4 DISADVANTAGES OF NPV 1.5 PAYBACK 1.6 Arguments in favour of payback 1.7 Debt vs Equity 1.8 Equity equals Ownership (Share Profits and Control) 1.9 Debt: Money You Owe 2.0 ADVANTAGES OF DEBT COMPARED TO EQUITY 2.1 DISADVANTAGES OF DEBT COMPARED TO EQUITY 2.2 Managerial Ownership and Agency Costs 2.3 Concentrated Ownership and Agency Costs 2.4 Debt and Agency Costs 2.5 PECKING ORDER THEORY OVERVIEW
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perez Morals and Values in the Middle Ages During the middle ages‚ there were many corrupt church officials‚ people who took advantage of others‚ and very few honest men. Geoffrey Chaucer was one of those honest men who believed in writing the truth and not just what the powerful wanted to hear. In his literary work‚ The Canterbury Tales‚ Chaucer’s biases and values are most portrayed through characters such as the Parson‚ the Oxford
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