Value of Future Payments http://valueoffuturepayments.com Future Payments Value Advice Thu, 29 Jul 2010 21:39:05 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 how do you calculate net present value for continuous payments over many years?? http://valueoffuturepayments.com/how-do-you-calculate-net-present-value-for-continuous-payments-over-many-years http://valueoffuturepayments.com/how-do-you-calculate-net-present-value-for-continuous-payments-over-many-years#comments Thu, 29 Jul 2010 21:39:05 +0000 Editor http://valueoffuturepayments.com/how-do-you-calculate-net-present-value-for-continuous-payments-over-many-years my problem states that a natural preserve would yield a net benefit stream of $5 per year, forever and to calculate the net present value when r= .04… im so stuck because the formula doesn’t make any sense to me…

]]> http://valueoffuturepayments.com/how-do-you-calculate-net-present-value-for-continuous-payments-over-many-years/feed 1 Help with terminating my C loop? http://valueoffuturepayments.com/help-with-terminating-my-c-loop http://valueoffuturepayments.com/help-with-terminating-my-c-loop#comments Thu, 29 Jul 2010 04:40:36 +0000 Editor http://valueoffuturepayments.com/help-with-terminating-my-c-loop include

int main (void)

{

double x, y;

printf(“Input x value: “);
scanf(“%lf”, &x);
if (x <0)
printf(“Error.”);
else
printf(“Input value of y: “);
scanf(“%lf”, &y);
if (y <0)
printf(“Error.”);
else
printf(“The future value of your money based on calculations is: $%.2f\n”, x+y);
}

In my “else”s, I expected the program would terminate after it printed out “Error.” on the screen, but it doesn’t.

Why doesn’t the program end? And how could I terminate it in my else?

Thank you.

]]> http://valueoffuturepayments.com/help-with-terminating-my-c-loop/feed 3 What is the present value equasion for momentary calculation of an option? http://valueoffuturepayments.com/what-is-the-present-value-equasion-for-momentary-calculation-of-an-option http://valueoffuturepayments.com/what-is-the-present-value-equasion-for-momentary-calculation-of-an-option#comments Fri, 23 Jul 2010 13:40:17 +0000 Editor http://valueoffuturepayments.com/what-is-the-present-value-equasion-for-momentary-calculation-of-an-option I want a formula I can plug in the values from known values that I get from Scottrade, Yahoo, SEC, what have you, to calculate my risk of investment when I purchase an option. “The Black Scholes Model assumes that the option can only be exercised at expiration.”?

]]> http://valueoffuturepayments.com/what-is-the-present-value-equasion-for-momentary-calculation-of-an-option/feed 1 Are my retirement 5 year buy in calculations correct? http://valueoffuturepayments.com/are-my-retirement-5-year-buy-in-calculations-correct http://valueoffuturepayments.com/are-my-retirement-5-year-buy-in-calculations-correct#comments Thu, 22 Jul 2010 21:40:43 +0000 Editor http://valueoffuturepayments.com/are-my-retirement-5-year-buy-in-calculations-correct Assumptions .
Age 44.
Retirement at 55.
Cost of buying 5 extra years toward retirement ~50,000*.

Current yearly pay ~ $65,000.
5 years extra retirement benefit x 10%.
Current benefit $6,500.

Years to retirement (55) 11.
Future value of benefit with 2% COLA
and 10 years compounding ~$8,000.

Conservative investment comparison.
A) $8,000 a year with 2% COLA for 20
years (age 75) @ discount rate of 11% ~$87,000.
Present worth of $87,000 in 11 year @ 5% ~$50,000*.
Added value $37,000.
Rate of Return 5.04%.

Aggressive investment comparison.
B) $8,000 a year with 2% COLA for 20.
years (age 75) @ discount rate of 6.5% ~$157,000.

Present worth of $157,000 in 11 year @ 10.5% ~$50,000*.
Added value $107,000.
Rate of Return10.45%.

Average Rate of Return 7.75%.

]]> http://valueoffuturepayments.com/are-my-retirement-5-year-buy-in-calculations-correct/feed 1 Using the formula P = F/ (1 + i )n calculate the present value of an investment that will yield $12000? http://valueoffuturepayments.com/using-the-formula-p-f-1-i-n-calculate-the-present-value-of-an-investment-that-will-yield-12000 http://valueoffuturepayments.com/using-the-formula-p-f-1-i-n-calculate-the-present-value-of-an-investment-that-will-yield-12000#comments Sat, 17 Jul 2010 05:42:56 +0000 Editor http://valueoffuturepayments.com/using-the-formula-p-f-1-i-n-calculate-the-present-value-of-an-investment-that-will-yield-12000 fifteen years from now at an annual rate of 10%.. The answer is $2872.70..But how do you use this formula to come up with this answer. I do not understand the formula & how it is used to come up with the answer

]]> http://valueoffuturepayments.com/using-the-formula-p-f-1-i-n-calculate-the-present-value-of-an-investment-that-will-yield-12000/feed 2 math of investing spreadsheet? http://valueoffuturepayments.com/math-of-investing-spreadsheet http://valueoffuturepayments.com/math-of-investing-spreadsheet#comments Fri, 16 Jul 2010 14:39:52 +0000 Editor http://valueoffuturepayments.com/math-of-investing-spreadsheet Ok, I know the formula for future value.
MYMONEY=C2*(1+F2)^G3
C2 = Source $$
F2 = Interest rate
G3 = Periods.
All 3 can be adjusted for what iffs.

G3 usualy changed to 5,10,20,22 (yrs to retirement)
to see what the $$ will be in a future time.

I built the spreadsheet to see if I could let the inheritance pay certain bills … but I assumed the periods would be yearly.
I forgot that the investments pay off more often.
I relize using a yearly period is very conservative to what funds would actually earn over a years time?

How would u adjust the above, with what Ive given here?

Dont give editorials about interest rates etc..I have averaged 10%-18% for decades..(and during certain years did better).
My dad has done 12-20% for at least 8 years.
But I agreee that the calculation above should be unusually conservative.

]]> http://valueoffuturepayments.com/math-of-investing-spreadsheet/feed 1 How to find the present value of this problem? http://valueoffuturepayments.com/how-to-find-the-present-value-of-this-problem http://valueoffuturepayments.com/how-to-find-the-present-value-of-this-problem#comments Sat, 10 Jul 2010 21:42:09 +0000 Editor http://valueoffuturepayments.com/how-to-find-the-present-value-of-this-problem The question is, “What is the present value for the future value of $500 at 5% compounded quarterly for 2 years? I am not sure what formula to use and I tried this and I got a different answer then the back of the book. Can someone show me step by step?

Thanks!

]]> http://valueoffuturepayments.com/how-to-find-the-present-value-of-this-problem/feed 1 An increase in the risk associated with a future stream of cash should result in an increase in the discount? http://valueoffuturepayments.com/an-increase-in-the-risk-associated-with-a-future-stream-of-cash-should-result-in-an-increase-in-the-discount http://valueoffuturepayments.com/an-increase-in-the-risk-associated-with-a-future-stream-of-cash-should-result-in-an-increase-in-the-discount#comments Sat, 10 Jul 2010 07:41:49 +0000 Editor http://valueoffuturepayments.com/an-increase-in-the-risk-associated-with-a-future-stream-of-cash-should-result-in-an-increase-in-the-discount An increase in the risk associated with a future stream of cash should result in an increase in the discount
rate used in the present value calculation.
True False

]]> http://valueoffuturepayments.com/an-increase-in-the-risk-associated-with-a-future-stream-of-cash-should-result-in-an-increase-in-the-discount/feed 1 How do I find a formula for future and present values? http://valueoffuturepayments.com/how-do-i-find-a-formula-for-future-and-present-values http://valueoffuturepayments.com/how-do-i-find-a-formula-for-future-and-present-values#comments Sun, 04 Jul 2010 13:42:37 +0000 Editor http://valueoffuturepayments.com/how-do-i-find-a-formula-for-future-and-present-values A persons annual salary starts out at $30,000. Find the formula for the persons salary t years later and find the salary after 5 years and 30 years in each case below:
a) each year the person recieves a raise of $2,000
b) Each year the person recieves a 5% raise

]]> http://valueoffuturepayments.com/how-do-i-find-a-formula-for-future-and-present-values/feed 2 some of the effects of using compound interest? http://valueoffuturepayments.com/some-of-the-effects-of-using-compound-interest http://valueoffuturepayments.com/some-of-the-effects-of-using-compound-interest#comments Sun, 04 Jul 2010 00:39:15 +0000 Editor http://valueoffuturepayments.com/some-of-the-effects-of-using-compound-interest What are some of the effects of using compound interest when evaluating future value transactions and calculations

]]> http://valueoffuturepayments.com/some-of-the-effects-of-using-compound-interest/feed 2 how calculate present value of investment? http://valueoffuturepayments.com/how-calculate-present-value-of-investment http://valueoffuturepayments.com/how-calculate-present-value-of-investment#comments Mon, 28 Jun 2010 05:41:39 +0000 Editor http://valueoffuturepayments.com/how-calculate-present-value-of-investment I have a partnership investment I inherited — I never have looked very carefully into it. Also, the partner is another family member, so I have basically left it all to trusting the general partner.

Now I want to sell and think I am being cheated of the fair value of the investment. The partnership holds the notes on the financing of real estate. How do I calculate present value of this investment.

I remember from college that there were formulas for calculating present value of a steady stream of future income. The thing is that this is not a certainty that this is a steady stream. People can default on their mortgage, or pay it all ahead of schedule if they refinance.

Is there an easy way of calculating PV without hiring an accountant?

]]> http://valueoffuturepayments.com/how-calculate-present-value-of-investment/feed 6 Social Security Benefit calculation problem,need help~? http://valueoffuturepayments.com/social-security-benefit-calculation-problemneed-help http://valueoffuturepayments.com/social-security-benefit-calculation-problemneed-help#comments Sun, 27 Jun 2010 17:39:36 +0000 Editor http://valueoffuturepayments.com/social-security-benefit-calculation-problemneed-help -Assume Tom’s base salary is $90000 per year.

-He is 28 now and plan on working until the end of his 65th year.

-The current withholding rate for Social Security is 6.2% for the employee, and the current withholding rate for the employer match for Social Security is 6.2%.

-Assume that the Social Security Administration can make an annual return of 2 percent of Tom’s account.

-Assume that the stock market rate of return is 11 percent.

-Assume that the 65 the maximum payment Tom can receive from Social Security is $1800 per month.

Please answer the following:

1.What is the future value of all of Tom’s contributions using the 2% rate of return? What does it look like with the 11% return?

2.Assume that Tom live until he is 80,what is the total value (constant dollars) that he will get paid out of Social Security?Compared to his contributions,is it a good investment?

3.Assume that Tom could take his lump sum investment is Social Security at age 65 (both the employee and employer contributions) and invest in Treasury bonds that yield 4.5 percent (paid quarterly).Using just the coupon rate,how much income would this generate for Tom at retirement?

4.Does it make sense to keep the current system or allow people to invest part of there own Social Security?

]]> http://valueoffuturepayments.com/social-security-benefit-calculation-problemneed-help/feed 1 The formula S = P(1 + n)i will determine the present value of $1. true or false? http://valueoffuturepayments.com/the-formula-s-p1-ni-will-determine-the-present-value-of-1-true-or-false http://valueoffuturepayments.com/the-formula-s-p1-ni-will-determine-the-present-value-of-1-true-or-false#comments Mon, 21 Jun 2010 21:40:36 +0000 Editor http://valueoffuturepayments.com/the-formula-s-p1-ni-will-determine-the-present-value-of-1-true-or-false The formula S = P(1 + n)i will determine the present value of $1. is it true or false?

]]> http://valueoffuturepayments.com/the-formula-s-p1-ni-will-determine-the-present-value-of-1-true-or-false/feed 1 Finance???????? http://valueoffuturepayments.com/finance http://valueoffuturepayments.com/finance#comments Mon, 21 Jun 2010 10:39:20 +0000 Editor http://valueoffuturepayments.com/finance Contrast the calculation of future (terminal) value with the calculation of present value. What is the difference?

]]> http://valueoffuturepayments.com/finance/feed 2 Is there a way to program the exponential growth formula, compound interest formula, and etc, into a TI83 plus? http://valueoffuturepayments.com/is-there-a-way-to-program-the-exponential-growth-formula-compound-interest-formula-and-etc-into-a-ti83-plus http://valueoffuturepayments.com/is-there-a-way-to-program-the-exponential-growth-formula-compound-interest-formula-and-etc-into-a-ti83-plus#comments Tue, 15 Jun 2010 13:41:06 +0000 Editor http://valueoffuturepayments.com/is-there-a-way-to-program-the-exponential-growth-formula-compound-interest-formula-and-etc-into-a-ti83-plus I just started using a TI83 plus and I am currently doing a lot of exponential functions and formulas like the exponential growth formula, compound interest formula, present value formula, and etc, and I was wondering if there is a way to program these in for quick reference? (So I don’t have to keep looking up the formula’s, its a lot to remember!)
Thanks for any tips on this!

]]> http://valueoffuturepayments.com/is-there-a-way-to-program-the-exponential-growth-formula-compound-interest-formula-and-etc-into-a-ti83-plus/feed 1 Accounting: I am STUMPED by this interest calculation. HELP!? http://valueoffuturepayments.com/accounting-i-am-stumped-by-this-interest-calculation-help http://valueoffuturepayments.com/accounting-i-am-stumped-by-this-interest-calculation-help#comments Tue, 15 Jun 2010 03:41:18 +0000 Editor http://valueoffuturepayments.com/accounting-i-am-stumped-by-this-interest-calculation-help What is the future value of equal semi-annual payments of $9,000 at 14% compounded semi-annually for 3 years:
a.$91,039
b.$54,380
c.$40,001
d.$64,380

]]> http://valueoffuturepayments.com/accounting-i-am-stumped-by-this-interest-calculation-help/feed 1 I’m looking for a “demand for payment” template? http://valueoffuturepayments.com/im-looking-for-a-demand-for-payment-template http://valueoffuturepayments.com/im-looking-for-a-demand-for-payment-template#comments Wed, 09 Jun 2010 08:37:23 +0000 Editor http://valueoffuturepayments.com/im-looking-for-a-demand-for-payment-template I would like to find a demand for payment or bad check letter that I can download and edit as needed. I have searched online, but can’t find any that are free. Do you know where online I can find one for free that I can save on my computer for future use? I am in the state of Texas, not sure if that matters. Thanks.

]]> http://valueoffuturepayments.com/im-looking-for-a-demand-for-payment-template/feed 1 How do you determine the future value of multiple single cash flows? http://valueoffuturepayments.com/how-do-you-determine-the-future-value-of-multiple-single-cash-flows http://valueoffuturepayments.com/how-do-you-determine-the-future-value-of-multiple-single-cash-flows#comments Wed, 09 Jun 2010 06:39:50 +0000 Editor http://valueoffuturepayments.com/how-do-you-determine-the-future-value-of-multiple-single-cash-flows Hi, I am unsure to determine, if you deposit $100 today and $200 at the end of this year and also deposit another $200 in 2 years from now, assuming that you can earn an interest rate of 4.5%p.a. on your investment, how much would you have in exactly 5 years from now?

Could you please show your working out.

Cheers :)

]]> http://valueoffuturepayments.com/how-do-you-determine-the-future-value-of-multiple-single-cash-flows/feed 1 For comcast cable, how many days past the due date does the payment have to be to make it late? http://valueoffuturepayments.com/for-comcast-cable-how-many-days-past-the-due-date-does-the-payment-have-to-be-to-make-it-late http://valueoffuturepayments.com/for-comcast-cable-how-many-days-past-the-due-date-does-the-payment-have-to-be-to-make-it-late#comments Wed, 09 Jun 2010 06:39:48 +0000 Editor http://valueoffuturepayments.com/for-comcast-cable-how-many-days-past-the-due-date-does-the-payment-have-to-be-to-make-it-late i.e. If Comcast received the payment maybe 2 days after the date the payment is due, is it considered late and are late fees charged? Or is it a longer time period before late fees are charged?

]]> http://valueoffuturepayments.com/for-comcast-cable-how-many-days-past-the-due-date-does-the-payment-have-to-be-to-make-it-late/feed 6 What is the FORMULA to find out the net present value of an amount to be received in the future? http://valueoffuturepayments.com/what-is-the-formula-to-find-out-the-net-present-value-of-an-amount-to-be-received-in-the-future http://valueoffuturepayments.com/what-is-the-formula-to-find-out-the-net-present-value-of-an-amount-to-be-received-in-the-future#comments Wed, 09 Jun 2010 05:39:43 +0000 Editor http://valueoffuturepayments.com/what-is-the-formula-to-find-out-the-net-present-value-of-an-amount-to-be-received-in-the-future
  • How do I find a formula for future and present values?
  • Use the compound interest formula to find the present value P, for the following given values?
  • 100=200/(1.06)^t how do I find t, this is from the present value formula?
  • The present value of a payment to be received in the future is?
    • ]]>     http://valueoffuturepayments.com/what-is-the-formula-to-find-out-the-net-present-value-of-an-amount-to-be-received-in-the-future/feed 2     Voluntary Repossession? http://valueoffuturepayments.com/voluntary-repossession http://valueoffuturepayments.com/voluntary-repossession#comments Wed, 09 Jun 2010 04:36:00 +0000 Editor http://valueoffuturepayments.com/voluntary-repossession Well we can’t afford to have my car anymore. I’m sure it’s not quite uncommon in this economy, but definitely has me embarrassed. My husband got out of the military and now can’t find work. And the only job that I’ve been able to even get is a part time minimum wager. If I tried to sell it out right, we’d owe way too much. The economy has made my vehicle lose too much value. I know this is not as bad as bankruptcy, but I really don’t want this to affect our future. I’ll be going to school starting in summer, and I don’t want to have problems getting a job when I graduate.
    So my questions are:
    1. Will this hurt my future job?
    -and why is it legal to discriminate against bad credit in the workforce?
    2. How bad will it hurt to get an apartment/house/utilities?
    3. If I make payments on the remaining balance, will it be as bad?
    4. Will this economy affect how much the car would go for at the auction?

    Thanks in advance for your answers! I appreciate the help.
    1. I don’t have any extra money to pay off the balance if I sold it
    2. I don’t have good enough credit to get a loan to cover what it would sell for
    3. My car was 2 years old when I bought it…I don’t buy new

    ]]>     http://valueoffuturepayments.com/voluntary-repossession/feed 4     Girlfriend has negative equity in condo – what to do? http://valueoffuturepayments.com/girlfriend-has-negative-equity-in-condo-what-to-do http://valueoffuturepayments.com/girlfriend-has-negative-equity-in-condo-what-to-do#comments Wed, 09 Jun 2010 01:14:18 +0000 Editor http://valueoffuturepayments.com/girlfriend-has-negative-equity-in-condo-what-to-do My girlfriend bought her condo in late 2006, putting $5k down on a price of $160k. She paid probably $5-10k more than it was worth in the context of the overinflated prices at the time.

    For a little more background – I am 29, she is 28. I have never owned property before. Earlier this year, she and I decided to live together, but her condo (a studio loft) was not an option. So we are renting an apartment together, and she is renting out the condo to a tenant. She is renting it for ~$200 less than her mortgage-plus-condo-fee payment, which is in turn about $200 more than her share of the rent on our apartment – upshot is that her cashflow is increased by about $200/month in this situation.

    So in the short term, things are fine – we both have good careers, combined income of about $140k with the potential to grow substantially in the next few years. We had no trouble at all renting the condo for the upper end of the range we were shooting for. We are very much in love and have discussed the possibility of marriage in the near future.

    With our future in mind, I am concerned about the condo. Zillow’s high estimate has it worth about $145k. This may still be on the low end, as the previous owners renovated the heck out of the place, everything is in great shape, and it shows VERY well so we should not have trouble renting it. But should she lose her job or have some other financial catastrophe, we would be sunk – she could not sell it for the amount left on the mortgage.

    What can we do in the near and medium term? I think we will probably just keep renting it out – and perhaps I will look into buying a condo that we could pay for on my income alone, once the market has truly bottomed out and marriage looks like a probability – but, for my peace of mind, is there anything else we can do?

    ]]>     http://valueoffuturepayments.com/girlfriend-has-negative-equity-in-condo-what-to-do/feed 6     Need Cash??? http://valueoffuturepayments.com/need-cash http://valueoffuturepayments.com/need-cash#comments Wed, 09 Jun 2010 00:40:40 +0000 Editor http://valueoffuturepayments.com/need-cash GET QUICK CASH FOR YOUR NOTE(S)

    From: Mrs. Caroline Rhoads
    notematch@yahoo.com

    Greetings!
    I am writing to introduce myself as a resource for helping people like you get the much needed cash you deserve or need for your seller financed trust deeds and mortgages.

    I work with buyers to provide cash for real estate notes, trust deeds, promissory notes and many other types of structured payouts.
    If you have any trust deeds, mortgages, judgments, structured settlements and other forms of IOUs. And wish you could have the cash and not the income from these IOU or if you have any questions,
    Please feel free to email me and I will be sure to provide them with the best possible service.

    I hope to hear from you soon,

    Caroline Rhoads

    P.S. Please feel free to contact me for any reason at: notematch@yahoo.com

    ]]>     http://valueoffuturepayments.com/need-cash/feed 1     Can someone explain me how i got 304, 614 on this calculation? http://valueoffuturepayments.com/can-someone-explain-me-how-i-got-304-614-on-this-calculation http://valueoffuturepayments.com/can-someone-explain-me-how-i-got-304-614-on-this-calculation#comments Tue, 08 Jun 2010 21:40:39 +0000 Editor http://valueoffuturepayments.com/can-someone-explain-me-how-i-got-304-614-on-this-calculation Future value = payment{ [ (1 + i)^n - 1] / i }

    240{ [ (1.006)^360 - 1] / 0.006}

    which gives 304,614

    Using a website with financial formulas i got this result, but i can’t get it on my calculator. I dont know what to calculate first. do i have to calculate the (1.006)^360 and the rest and then multiply by 240?? thats not giving me 304, 614.. could someone explain me how to do this on calculator step by step? thanks

    ]]>     http://valueoffuturepayments.com/can-someone-explain-me-how-i-got-304-614-on-this-calculation/feed 4     WACC (Weighted average cost of capital) calculation? http://valueoffuturepayments.com/wacc-weighted-average-cost-of-capital-calculation http://valueoffuturepayments.com/wacc-weighted-average-cost-of-capital-calculation#comments Tue, 08 Jun 2010 20:40:51 +0000 Editor http://valueoffuturepayments.com/wacc-weighted-average-cost-of-capital-calculation Folks -

    I am doing some analysis for several companies to answer the question – “The stock-price of a company is reflection of its current and future value component. For a given company, what is breakdown of the current and future value components. For example, GOOG stock price reflects 10% current value and 90% future value”.

    To do this calculation, I need to know WACC (http://en.wikipedia.org/wiki/Weighted_average_cost_of_capital) for each company.

    Is there a source (like Rueters) where I can get WACC for any public company? Or, if I use the formula mentioned in the wikipedia entry – then what items do I look at each company’s income statement/balance sheet to calculate WACC?

    Any help appreciated.

    ]]>     http://valueoffuturepayments.com/wacc-weighted-average-cost-of-capital-calculation/feed 1     how to calculate future value? http://valueoffuturepayments.com/how-to-calculate-future-value http://valueoffuturepayments.com/how-to-calculate-future-value#comments Tue, 08 Jun 2010 13:43:33 +0000 Editor http://valueoffuturepayments.com/how-to-calculate-future-value if you deposit $10000 in a bank that pays 10% interest annually how much will be in your account after 5yrs

    ]]>     http://valueoffuturepayments.com/how-to-calculate-future-value/feed 2     Calculate the present value of a…..? http://valueoffuturepayments.com/calculate-the-present-value-of-a http://valueoffuturepayments.com/calculate-the-present-value-of-a#comments Tue, 08 Jun 2010 11:40:10 +0000 Editor http://valueoffuturepayments.com/calculate-the-present-value-of-a Calculate the present value of a 6% U.S. Government bond that pays semi-annual interest for 5 years. Assume the bond’s principal payment is $1,000 and the market interest rate is 9%.

    A.$614.94 B.$1118.69 C.$779.20 D.$881.31 E.$873.63

    This is the last problem on my homework for finance class. I don’t have my financial calculator and I can’t figure this one out..if anyone can help me out that would be awesome!!

    thanks so much everyone!!

    ]]>     http://valueoffuturepayments.com/calculate-the-present-value-of-a/feed 1     Compute NPV, Make decision? http://valueoffuturepayments.com/compute-npv-make-decision http://valueoffuturepayments.com/compute-npv-make-decision#comments Tue, 08 Jun 2010 11:40:08 +0000 Editor http://valueoffuturepayments.com/compute-npv-make-decision Company wants to invest $150,000 on new machine. The following projection will occur. Company wants at least 20% return. Using table 1A, Compute NPV, Make decision

    Annual Cash Flows’ Factor” _______________”’
    Cost Machine $(150,000)’
    Increase in
    Working Capital (100,000)’
    Year 1 Net Cash
    Flow 70,000′
    Year 2 Net Cash
    Flow 70,000′
    Year 3 Net Cash
    Flow 70,000′
    Year 4 Net Cash
    Flow 50,000′
    Year 5 Net Cash
    Flow 30,000′
    Year 3 Spend on
    Tooling
    Maintenance (20,000)’
    Year 5 Release
    Working Capital 100,000′
    Year 5 sell
    machine for
    salvage value 10,000′ _______________

    Buy Machine YES NO Net Present Value

    Table 1A
    Present Value of $1′ Present Value of Annuity of $1″

    10%’ 20%’ 10%” 20%”
    Period 1 .909′ .833′ Period 1 .909″ .833″
    Period 2 .826′ .694′ Period 2 1.736″ 1.528″
    Period 3 .751′ .579′ Period 3 2.487″ 2.106″
    Period 4 .683′ .482′ Period 4 3.170″ 2.589″
    Period 5 .621′ .402′ Period 5 3.791″ 2.991″

    ]]>     http://valueoffuturepayments.com/compute-npv-make-decision/feed 1     I’m so annoyed by Mother in Law’s bragging over her future hybrid car. How to get her to stop? http://valueoffuturepayments.com/im-so-annoyed-by-mother-in-laws-bragging-over-her-future-hybrid-car-how-to-get-her-to-stop http://valueoffuturepayments.com/im-so-annoyed-by-mother-in-laws-bragging-over-her-future-hybrid-car-how-to-get-her-to-stop#comments Tue, 08 Jun 2010 08:36:16 +0000 Editor http://valueoffuturepayments.com/im-so-annoyed-by-mother-in-laws-bragging-over-her-future-hybrid-car-how-to-get-her-to-stop Ok so my hubby and I don’t drive a new car, it’s almost ten years old. We made a deal to loan money off her boyfriend and pay him back so we can get a second car. Her boyfriend decided he’s going to help her buy her a Toyota Prius because she drives like a mad woman. She is going to have to pay monthly payments which are going to be at least $300 a month ontop of at least $200 a month in gasoline. I am getting so annoyed hearing her say how she put down a deposit and she’s going to get her Prius soon. She already had her other car reposessed and my husband had to cover for her and go retrieve the vehicle that she HID at her boyfriend’s house. She’s a criminal, I know.

    Anyways, I don’t think hybrid cars are a great deal for someone who is always complaining about being broke, who had a car repoed not even 1 year ago, and who cannot afford her utility bills to begin with. It’s just going to add an extra few hundred to her expenses, even if she saves money on gas, she’ll still have a car payment.

    So everytime we see her, she is in lala land about this car she has on hold for when it comes in. What can I say to get her to stop? It’s getting rediculous, and no, I’m not jealous. I’m just ticked that this woman needs two cars and she’s a single mother (and she has to brag to someone less fortunate about it!)

    ]]>     http://valueoffuturepayments.com/im-so-annoyed-by-mother-in-laws-bragging-over-her-future-hybrid-car-how-to-get-her-to-stop/feed 9     Mom Being Secretive? Please Help!? http://valueoffuturepayments.com/mom-being-secretive-please-help http://valueoffuturepayments.com/mom-being-secretive-please-help#comments Tue, 08 Jun 2010 08:36:14 +0000 Editor http://valueoffuturepayments.com/mom-being-secretive-please-help So I was helping my mom look for a paper she needed when I came across a paper with the title of..

    Social Security Administration Retirement, Survivors and Disability Insurance Notice of Award.

    The document had my name written all over it talking about a payment of a pretty large sum of money that my mother shall be recieving.(Im guessing because of me).

    At the bottom it says “These and any future payments will go to the financial institution you selected.”

    I was wondering what this is all about and if she is collecting money every month on my behalf, or if it was going into some account for me, or what?

    By the way, when I asked her what it was about, she said it was something that wasnt meant for my eyes, then took it.

    Please help!

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