Essay on Net Present Value and Percent - 2231 Words

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 monthly). If you deposit a further $500 each month to this account, how long, approximately, before you will accumulate enough to meet your down payment requirement? (Ch6) a. 17.6 Years b. 8 Months c. 11 Months d. 16 Months e. 1.84 Years 3. Which†¦show more content†¦Dividends are expected to grow at 25% rate for the next 3 years, with the growth rate then leveling at a constant 4% thereafter. The required return is 12% and the company just paid a $2.50 annual dividend. What is the current share price? (Ch 8) a. $34.92 b. $54.56 c. $68.14 d. $92.12 e. $126.21 3 14. You are considering two independent projects both of which have been assigned a discount rate of 14% percent. Based on the project NPV, what is your recommendation concerning these projects? (Ch 9) Year 0 1 2 a. b. c. d. e. Project A Cash Flow -$40,000 $22,000 $28,000 Year 0 1 2 Project B Cash Flow -$39,000 $28,000 $21,000 You should accept both projects. You should reject both projects. You should accept project A and reject project B. You should accept project B and reject project A. You should accept project A and be indifferent to project B. 15. Referring to the above question and table, if the projects under consideration are mutually exclusive, then what would your answer be? (Ch 9) a. b. c. d. e. You should accept both projects. You should reject both projects. You should accept project A and reject project B. You should accept project B and reject project A. You should accept project A and be indifferent to project B. 16. Drake Builders, Inc. purchased a lot in Tucson, Arizona 10 years ago at a cost of $380,000. At the time of the purchase, the company spent $15,000 to level the lot and another $20,000 to install storm drains. Today, that lotShow MoreRelatedCase02 Piedmont1133 Words   |  5 Pages12, 14, and 16 percent affect the project’s feasibility? Figures 6 – 10 provide suggested answers for this question. The answers for this question assume a useful life of 5 years. Using a discount rate of 8 percent, the net present value of all benefits is $1,732,836.16; the net present value of all costs is $1,640,384.79; the overall net present value is $92,451.36, and the project breaks even in approximately 3.84 years. Using a 10 percent discount rate, the net present value of all benefitsRead MoreVictoria Chemicals Plc B Merseyside And Rotterdam Projects Essay1334 Words   |  6 Pagescapital budgeting issues, which include, among other things, the identification of relevant cash flows, the critical assessment of a capital-investment rating system, the classic â€Å"cross-over† problem in the project agree rankings based on the net present value (NPV) and internal rate of return (IRR). his is an analysis of the two discounted cash flows that will be used in summarizing the financial impact that this capital improvement to the polypropylene line will have on the Rotterdam business volumeRead Morech9 rev answers 951 Words   |  4 Pages400 and a market value of $32,600. What is the difference between these two values called?   A.  net present value B.  internal return C.  payback value D.  profitability index E.  discounted payback 3.  The length of time a firm must wait to recoup the money it has invested in a project is called the:   A.  internal return period. B.  payback period. C.  profitability period. D.  discounted cash period. E.  valuation period. 5.  A projects average net income divided by its average book value is referred to asRead MoreThe North Sea Oil Company1600 Words   |  7 PagesTherefore, this portfolio project will address about the North Sea Oil Company’s proposed capital budgeting projects by using capital budgeting techniques to calculate and evaluate the company’s weighted average cost of capital, payback period, net present value, and internal rate of return from the given case information because calculating the capital structure based on the assumption the projects are implemented will give the investors either positive or negative signals. Weighted Average CostRead MoreNet Present Value and Washington State University740 Words   |  3 PagesWashington State University Finance 325 Practice Problems 1. What is the net present value of a project with the following cash flows and a required return of 12 percent? Year 0 1 2 3 Cash Flow -$28,900 $12,450 $19,630 $ 2,750 2. What is the net present value of a project that has an initial cash outflow of $12,670 and the following cash inflows? The required return is 11.5 percent. Year 1 2 3 4 Cash Inflows $4,375 $ 0 $8,750 $4,100 3. A project will produce cash inflows of $1,750Read MoreFin 571 Week 5 Connect Problems1026 Words   |  5 Pages1. The difference between the present value of an investment?s future cash ï ¬â€šows and its initial cost is the: †¢ net present value. †¢ internal rate of return. †¢ payback period. †¢ proï ¬ tability index. †¢ discounted payback period. 2. Which statement concerning the net present value (NPV) of an investment or a ï ¬ nancing project is correct? †¢ A ï ¬ nancing project should be accepted if, and only if, the NPV is exactly equal to zero. †¢ An investment project should be accepted only if the NPV is equalRead MoreEssay Capital Budgeting935 Words   |  4 Pages Consequently, it was necessary to consider an alternative solution. The proposal below provides a detailed explanation of all options including an alternative solution. Explanation: Option A and Option B The city has required a return of 12 percent and a critical acceptance level of 2.75 years. While neither project meets all critical, Option B does meet the internal rate of return. In determining the payback period, the formula used included total capital costs minus benefits. The total capitalRead MoreBuying An Outdoor Smoker Industry1238 Words   |  5 Pagesapproximately one million nine hundred seventy thousand and fifty six dollars. Based on these net present values the alternative of purchasing an outdoor grill would be recommended. This is due to the fact that the NPV for this alternative was positive, well the other alternatives NPV was negative. When choosing investment projects based on the NPV a positive value is always choose over a negative value. If the alternatives where independent of each other and the funding was available it wouldRead MoreInvestment Detective868 Words   |  4 Pageshistorical data from other capital budgeting analysts in the firm, we deemed a ten percent discount rate as an appropriate figure for our calculations. The analytical criteria in which we feel we gives us the best results to help us choose the top four projects are Net Present Value, Internal Rate of Return, and the Payback Period calculation. We are basing our rankings solely on the results we receive from our Net Present Value calculations because we feel this method to be the most consistent and itRead MoreEssay about Rock Creek Golf Club1510 Words   |  7 Pagesgasoline-powered golf carts. RCGC would need to obtain a loan for $89,600 at an eight percent interest rate for five years with a payment due at the end of each year in order to fund the purchase. A payment in the amount of $22,441 will be due at the end of each year for five years (the duration of the loan). Total interest paid will be $22,604 over the course of the loan. When you factor in the eight percent annual interest over the course of five years, the 40 golf carts will cost a total of

Smoking Cessation Program For New Zealand Smoke Free...

Smoking Cessation Program in New Zealand: Smoke-free 2025 Introduction Tobacco smoke is immensely harmful to one’s health. Cigarettes contain about 600 ingredients, when this burned can generate 7,000 chemicals according to American Lung Association Many ad campaigns and literatures have been published on the detriments of smoking. Medical reports further shows that half of all long-term smokers will die from a smoking-related disease. This unhealthy practice must be addressed by the government to lessen the medical cost to treat the ill effects of smoking. Despite all available data available on smoking’s ill effects government has little success in reducing incidence of smoking. The New Zealand Government is currently addressing a smoking problem in the country. The government adopted the Smoke-free 2025 goal for New Zealand, in March 2011. This response was based on the recommendations of a landmark Parliamentary inquiry by the Maori Affairs select committee. The committee’s report was clear that the term ‘smoke-free’ was intended to communicate an aspirational goal and not a commitment to the banning of smoking altogether by 2025. On that basis, the Government agreed with the goal of reducing smoking prevalence and tobacco availability to minimal levels, thereby â€Å"making New Zealand essentially a smoke-free nation by 2025†, (MoH, 2015). It is important to have consistent information to help to monitor the progress toward this goal. The campaign in New Zealand for aShow MoreRelatedTobacco Smoke And Its Effects On Health1406 Words   |  6 PagesTobacco smoke is immensely harmful to one’s health. Cigarettes contain about 600 ingredients, when this burned can generate 7,000 chemicals according to American Lung Association Many ad campaigns and literatures have been published on the detriments of smoking. Medical reports further shows that half of all long-term smokers will die from a smoking-related disease. This unhealthy practice must be addressed by the government to lessen the medical cost to treat the ill effects of smoking. DespiteRead MoreSmoking Cessation in New Zealand1626 Words   |  6 PagesTITLE: SMOKING CESSATION IN NEW ZEALAND RATIONALE AND AIM The aim of my proposal is to give valuable information about smoking and smoking cessation in a presentation that could be helpful to teenagers and pregnant women who want to quit smoking. The presentation will use simple pictures and language to make it easy for everybody to learn about the harmful impact of smoking on health. Along with this, there are three key goals of tobacco control exercises: To lessen the use of smoking, to discontinueRead MoreThe Implications And Impact Of Tobacco Taxation Essay2024 Words   |  9 Pagesthe implications and impact of tobacco taxation increases on achieving the Smokefree 2025 goal in New Zealand. Firstly, I would review literatures about use of tobacco taxation around the world, the research methods and implications on smoking control. Secondly, I would carry out a survey about attitude and reaction of smokers and their families (potential smokers) for increasing tobacco taxation in New Zealand. Thirdly, in order to assess whether taxation will be an effective strategy associated

Presence of an Egocentric Employee-.com

Question: Discuss about the Presence of an Egocentric Employee at work place. Answer: Introduction In almost every organization in the world, there is that problem of an egocentric employee. The egocentric employee brings many inconveniences by somehow managing to ruin discussions that are work related, only to satisfy their ego of being heard, and viewing their ideas to be the most important than those brought forward by others. Such ego can bring corrosive damage to productivity at work place since it makes other employees to refrain from active participation thus limiting the number of creative ideas or solutions to a problem. However, there are several ways, which can help deal with egocentric employees. Such ways include. Rolling out procedures e.g. development of weekly reports, which target to subduing the effects of egocentric employees while at the same time improving workflow. The procedure would require that the egocentric employee is made the champion of the procedure by ensuring they develop there's as well as make sure others develop theirs so that even the rest can follow. This not only makes the egocentric employee a positive workforce but also ensures the procedure is followed and the employee is preoccupied, as they want to ensure the procedure is implemented and followed throughout the workplace. Another way is by clearing the report channels. Clearing of report channels involves ensuring the egocentric employee is regularly reporting to the immediate supervisor. On the other end, the employee is given a position of team leader. This makes sure the employee is kept on a tight rein especially when it comes to group work as such characters are good in ensuring cohesion among the staff. On the other hand, it ensures that the egocentric employee does not become too oppressive of others. This is because the employee will be keen to impress the immediate supervisor, regarding teamwork delivery, hence restrict their dominant behavior while at the same time motivate them to perform for approval. Rewarding good work is another way that a manager can deal with the problem of an egocentric employee. The rewards can range from rewarding the best team or employee with retreats to the recognition of these employees. Though this is a normal routine at the workplace, the action goes a long way in recognizing their efforts. These ensure that the employees whether egocentric or not feel that they are doing a good job from time to time. Moreover, the strategy curbs the ego and foster teamwork and productivity since the rewards are available to anyone. Also, ensuring that the egocentric employee is always busy will help a lot in dealing with the problem. These employees can be made busy by holding them responsible for several roles such as reconciling the accounts and preparing the financial statements as well as providing payrolls all by one person. Being busy keeps the employee focused, especially if they are used to distracting others with propagandas, which is usually given loudly. Managing to keep the loud mouth of the office busy ensures that they lack the spare time to distract other employees. The egocentric employee, therefore, is loaded with a lot of work, which makes more productive and less distractive. Conclusion The presence of an egocentric employee at work place is common these days. However, with the right kind of management and mentality, they can be a valuable asset to the organization. When the management can handle the egocentric employee to their advantage, the effects of such type of personality affects the rest of the employees, and this ensures increased productivity at work place. Managers, therefore, should implement the measure mentioned in this paper and in no time, the problem of an egocentric employee will be turned around into a valuable asset for the benefit of the organization.

Tqm Doesnt Work Essays - Process Management, Quality Management

Tqm Doesn't Work While I agree that Quality improves organizations, businesses, and individuals, Total Quality Management (TQM) as a system for improvement loses its effectiveness based on the present culture, business methodologies, and globalization of markets. TQM has invaded countless industries and is a favorite buzz word of top executives and managers, TQM concepts are rarely fully implemented other than posters, memos, and press releases. While the basic concepts of TQM are inherently internal to each of us, the moniker of TQM continues to be an elusive goal that everyone in business loves to talk about but never successfully implements. This approach involves guaranteeing that an organization functions with a commitment to quality and continuous improvement in meeting its consumer's needs. With any type of change there will always be a number of bumps in the road which slow down the process that can help a company increase the workers morale, production, profits, and an over all positive environment to conduct business. The Culture: The culture of today is not ripe for change. Individuals, both managers and workers alike are impatient, expecting results over night. These unrealistic cultural expectations make implementing any quality system a challenge in itself. Consumers are tired of false promises and are impatient for immediate results and the best for less. As years pass, generations pass on the wisdom of the previous lessons learned in hopes that their mistakes can be prevented by passing on wisdom gained through experience. While lessons in business remain timeless, the goals and implementations are not always so apparent in their application based on changing environments and consumers. In todays society, a day rarely passes that has not been tainted with a slew of television infomercials which promise the impossible and go so far as to 100% guarantee results and or satisfaction. Todays individuals demand overnight express delivery or they are quick to change to an avenue that offers such ty pe of service. In a new world where internets make online global shopping lightning fast results must be immediate. Because we as a culture have become accustomed to having everything immediately, we are less likely to be patient enough or consistent enough to benefit from the concepts of TQM as outlined by Dr. Demings fourteen points. The TQM system is not one that lends itself to an overnight turn around. TQM is a gradual system that works to realign organizational cultures towards quality and process improvement. As managers do see the immediate value of such a system, they are always expecting immediate results and total commitment based on the fact that memos were published and distributed, meetings were held, and a newly formed TQM department circulated the newsletter. The culture of today does not want to commit to a system that doesnt offer overnight results. This culture wants results like its foodfast and low quality. Think of how the McDonalds slogan epitomizes the cultur e of todayover one million served. Business Methodologies: Today, methodologies around business focus on quick results and flawless quantifiable execution at the speed of light. Because methodologies are such, patient transition or goal transformation is not consistent with todays business norms. As the computer age has swept both housholds and businesses alike, the speed and accuracy at which millions of transistors and microcircuits operate dazzle scientists while ensuring the success of one business and marking the failure of another to keep up with the blazing pace that dominates the business world. If a business can quickly leverage its resources it can keep up with the pack, otherwise todays norms predict failure. Like the functions of a microchip, quantifiable standards have focused directly on the bottom line-profit. While TQM presents an indirect method of approching the same goal. Mathematics and Physics point to a direct approach, much like an accountant works to maximize profits by adjusting numbers and ca lculating. TQM also works against the more traditional business models with centralized leadership under where an elite group directs and organizes all efforts for the masses to execute. In all cases TQM requires the organization to evaluate itself. Organization examination is often mentioned as the most critical element in the TQM process. With this technique utilized a company can measure all aspects of its output in