Time Value of Money is one of the most important concepts in the financial world. The principles of time value analysis have many applications, ranging from setting up schedules for paying off loans to decisions about whether to acquire new equipment for a company. Time value of money is also called discounted cash flow analysis. Your task for this module is to apply the concept of present value to your chosen SLP company. Suppose your company is selling a bond that will pay you $100,000 in one year from today. Keep in mind that if your company has financial difficulties in one year you might not get your full $100,000 back. Given that a dollar one year from now is always worth less than a dollar today, you most certainly would not pay a full $100,000 for this bond. If you are highly risk averse or strongly prefer having money today to having money tomorrow, then you would pay significantly less than $100,000 for this bond. Higher inflation or high interest rates would also lead you to pay less for the bond. Also, the greater the chance of bankruptcy of your company the less you should be willing to pay for the bond. Given the concepts of the time value of money, answer the following questions in a two to three page paper: 1) How much would you pay for this bond today? Take into consideration your own personal risk preferences, interest rates, inflation, and the probability your company will not be able to pay you back in one year. Note: no need for any math equations for this part. Just explain how much you would personally pay for a $100,000 bond from this company.

Time Value of Money is one of the most important concepts in the financial world. The principles of time value analysis have many applications, ranging from setting up schedules for paying off loans to decisions about whether to acquire new equipment for a company. Time value of money is also called discounted cash flow analysis.Â

Your task for this module is to apply the concept of present value to your chosen SLP company. Suppose your company is selling a bond that will pay you $100,000 in one year from today. Keep in mind that if your company has financial difficulties in one year you might not get your full $100,000 back. Given that a dollar one year from now is always worth less than a dollar today, you most certainly would not pay a full $100,000 for this bond. (more…)

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Courtney Baxter has presented Joshua with yet another opportunity: It is related to a commercial property investment. Based upon a market analysis involving the review of supply and demand, rents, and estimated operating expenses, annual net operating income (NOI) is estimated as follows:

Courtney Baxter has presented Joshua with yet another opportunity: It is related to a commercial property investment. Based upon a market analysis involving the review of supply and demand, rents, and estimated operating expenses, annual net operating income (NOI) is estimated as follows: (more…)

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