Find the present value of the given future amount.

Q: Why future value is important to calculate?

A: Future value is the value of what a certain asset/cash/instrument will be worth at a future…

Q: Determine the internal rate of return of a project?

A: Capital budgeting analysis is useful to know which projects are profitable and which are not. There…

Q: Explain what is meant by future deductible amounts. Why is it important to understand this concept?

A: Future deductible amounts refer to the expenses that a business incurs in the current period but…

Q: For each of the following, compute the future value.

A: Future Value (FV)= To determine value of cash flow at a future date. Formula used to determine…

Q: Write the various applications that call for annual-worth analysis techniques?

A: Annual worth analysis is the analysis which is done by the managers before taking capital budgeting…

Q: Explain the concept of time value of money. Differentiate between present value and future value.…

A: 1) The time value of money is a financial concept that holds that money in the present is worth more…

Q: Define the term future value.

A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…

Q: Give a conclusion about time value of money and its applications

A: Below is the conclusion about the time value of money:

Q: Calculate the Net Present Value (NPV) for both projects?

A: Net Present Value - It is the difference between the present value of cash outflow and present value…

Q: How can we aggregate the risk over the project life in terms of net present value?

A: It is an incorporation of the risk level of the project over the life of the in terms of NPV by way…

Q: what is an annuity? Provide an example

A: Annuity is an important concept in finance especially in the context of time value of money. Annuity…

Q: What is the net present value of an annuity?

A: Net present value is defined as the temporal variation in the present value of cash inflows and…

Q: How to find the incrementa

A: Incremental cost is an additonal cost which a manufacturer incurs due…

Q: Briefly introduce about about the concept of time value of money. Also differentiate  present value…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: What is the concept of future value within the context of the larger overall concept of the time…

A: The concept of future value is a fundamental component of the broader idea known as the time value…

Q: a present value is converted to a future value through compounding, explain this to me.

A: Present value (PV) is the amount of money one is having today. Future value (FV) is how much money…

Q: Discuss the present value of an annuity due with an example

A: Present value of an annuity An Annuity is a stream of regular periodic payments made or received for…

Q: How do you evaluate an asset whose value is dependent on future cash flow expectations

A: The Answer :

Q: What effect do interest rates have on the calculation of future and present value? How does the…

A: The time value of money is a concept that is based on the idea that a given amount of money is worth…

Q: When is a project in Need for an External Interest Rate?

A: When net cash flow that is generated by the project during the project’s life is reinvested, then…

Q: Give an interesting feature of any perpetual annuity?

A: Interesting feature of any perpetual annuity: The feature of perpetual annuity is that, a stream of…

Q: What do we call the process of finding future value? Discounting Compounding Discount interest…

A: This is based on the concept of time value of money.   Amount put aside today or invested today…

Q: What happens to a future value is you increased the rate, r? What happens to a present value?

A: When the interest rate increases, the future value of a sum now will increase. This is because the…

Q: What is the criteria to accept a project based on the net present value and the internal rate of…

A: Net present value (NPV) Is the difference between present value of all cash inflows and initial…

Q: Derive the formula

A: Future worth or Future value refers to the value of current asset at some future point of time on a…

Q: the table use to find present value of an annuity is called

A: Annuity is the sum of all the discounted factors from year 1 to n. It will provide the value of…

Q: What will an investment or a series of investment be worth after a period of time?

A: The time value of money states that an amount of money is worth more now than it will be in the…