Time Value of Money

Overview: In corporate finance, students need to be able to calculate present and future values of investments.

Purpose: The purpose for this project is to demonstrate an understanding of how to calculate present and future values.

Requirements: Review the examples then answer all of the questions below.

Example 1: What is the present value of the $800 to be received 10 years from now discounted back to the present at 10%.

Use your financial calculator to find the present value of -$308.43. Be sure that you have cleared all on your calculator and have it set up correctly. Please see the HB10B Calculator Podcast under Start Here in Content if you need to make sure you have done this. Then press the following keys where N is the time frame, I/YR is your interest rate, PV is your present value, PMT is your payment and FV is your future value.

N         =          10

I/YR          =       10

PV             =       –308.43

PMT          =       0

FV             =       800

Example 2: What is the accumulated sum of $500 a year for 10 years compounded annually at 5%?

Use your financial calculator to find the sum of $6,289.

            N              =       10

I/YR          =       5

PV             =       0

PMT          =       –500

FV             =       6,289

Example 3: What is the present value of a $2,500 a year annuity for 10 years discounted back to the present at 7%?

Use your financial calculator to find the present value of -$17,559.

             N              =       10

I/YR          =       7

PV             =       -17,559

PMT          =       2,500

FV             =       0

1. What is the present value of the following future amounts? Show your work for your financial calculator as shown in Example 1.

1. $300 to be received 5 years from now discounted back to the present at 5%.
2. $1,000 to be received 8 years from now discounted back to the present at 3%.
3. $1,000 to be received 8 years from now discounted back to the present at 20%.

2. What is the accumulated sum of each of the following streams of payments? Show your work for your financial calculator as shown in Example 2.

1. $100 a year for 5 years compounded annually at 10%.
2. $35 a year for 7 years compounded annually at 7%.
3. $25 a year for 3 years compounded annually at 2%.

3. What is the present value of the following annuities? Show your work for your financial calculator as shown in Example 3.

1. $70 a year for 3 years discounted back to the present at 3%.
2. $280 a year for 7 years discounted back to the present at 6%.
3. $500 a year for 10 years discounted back to the present at 10%.

1. Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2017 and completed in 2018. Cost and other data are presented below:

                                                                          2017                           2018

Costs incurred during the year                    $ 450,000                  $1,100,000

Estimated costs to complete                       1,050,000                                  0

Billings during the year                                 400,000                    1,400,000

Cash collections during the year                    300,000                    1,500,000

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.

Required:

Prepare all journal entries to record costs, billings, collections, and profit recognition for 2017 and 2018.

2. Answer each of the following unrelated questions.

1) Bill wants to give Maria a $500,000 gift in seven years. If money is worth 6% compounded semiannually, what is Maria's gift worth today?

2) At the end of each quarter, Patti deposits $500 into an account that pays 12% interest compounded quarterly. How much will Patti have in the account in three years?

*In the following questions, the interest is compounded annually.

3) Spielberg Inc. signed a $200,000 noninterest-bearing note due in five years from a production company eager to do business. Comparable borrowings have carried an 11% interest rate. What is the value of this debt at its inception?

4) Mustard's Inc. sold the rights to use one of its patented processes that will result in cash receipts of $2,500 at the end of each of the next four years and a lump sum receipt of $4,000 at the end of the fifth year. The total present value of these payments if interest is at 9% is:

5) Claudine Corporation will deposit $5,000 into a money market sinking fund at the end of each year for the next five years. How much will accumulate by the end of the fifth and final payment if the sinking fund earns 9% interest?

6) Fenland Co. plans to retire $100 million in bonds in five years, so it wishes to fund a savings account at the beginning of each year during that period for which it expects to earn 8% annually. At the end of the five years, there will be enough money in the account to pay off the bonds. What amount does Fenland need to invest each year?

7) Polo Publishers purchased a multi-color offset press with terms of $50,000 to be paid at the date of purchase, and a noninterest-bearing note requiring payment of $20,000 at the end of each year for five years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at:

Please note that for all problems in this course, the standard cut-off (alpha) for a test of significance will be .05, and you always report the exact power unless SPSS output states p=.000 (you’d report p<.001). Also, remember that we divide the p value in half when reporting one-tailed tests with 1 – 2 groups.

12. Paste the relevant SPSS output, including post hocs if necessary. (2 pts)

13. Create the most appropriate graph for this data given the results. (2 pts)

14. Write an APA-style Results section based on your analysis. All homework “Results sections” should follow the examples provided in the presentations and textbooks. They should include the statistical statement within a complete sentence that mentions the type of test conducted, whether the test was significant, and if relevant, effect size and/or post hoc analyses. Don’t forget to include a decision about the null hypothesis. (4 pts)

Can I get some assistance with this request.

Right now the code that converts a hex character read on input into its decimal value is in the main routine. To make the main routine easier to read, make the conversion code concise and reusable, move it into a function named hex2Dec. The hex2Dec function should take a character parameter which is the character read from input. The function should return an integer which is the converted decimal value of the hexadecimal value represented by the character read from input and passed in as a parameter.

Tasks

1. Copy the conversion code in the main() routine from the main() routine to lines of code just above.
2. Next, wrap the conversion code in the function declaration code using the return type, name of the function, and the parameters.
3. Next, add a call to the function in the main routine passing in the character that was read and assigning the return value to the resulting decimal value that you declared.
4. Test your code in an identical fashion to that of Project 1B

Here is my project 1B. how can i change it to meet this requirement.

/******************************************************************************

Online C Compiler.
Code, Compile, Run and Debug C program online.
Write your code in this editor and press "Run" button to compile and execute it.

*******************************************************************************/

#include <stdio.h>

int main(void) {
   char input;
   while (1){
   scanf("%c", &input);
   if (input == 'X')
{
   break;}
   printf("You have entered %c\n", input);
      
   if (input >= '0' && input <= '9'){
   int ascii_decimal = (int)input;
   printf("Decimal value of the ASCII character %c = %d\n", input, ascii_decimal);
          
   int hexa = input - '0';
   printf("Decimal value of the Hexadecimal digit %c = %d\n", input, hexa);}
   else{
          
   int ascii_decimal = (int)input;
   printf("Decimal value of the ASCII character %c = %d\n", input, ascii_decimal);
          
   int hexa = input - 'A' + 10;
   printf("Decimal value of the Hexadecimal digit %c = %d\n", input, hexa);}

   if(input>='0'&&input<='9')
{
              
   int ascii_decimal = (int) input;
   printf("Decimal value of the ASCII character %c = %d\n",input,ascii_decimal);
              
   int hexa = input-'0';
   printf("Decimal value of the Hexadecimal digit %c = %d\n",input,hexa);}
          
   else if(input>='A'&&input<='F')
{
              
   int ascii_decimal = (int) input;
   printf("Decimal value of the ASCII character %c = %d\n",input,ascii_decimal);
              
   int hexa = input-'A'+10;
   printf("Decimal value of the Hexadecimal digit %c = %d\n",input,hexa);}
          
   else
{
   printf("you have entered invalid input!!\n");}
      
   fflush(stdin);}

   return 0;
}

Electronic communication has all but replaced traditional means of communication in our lives and work. As a result, we have experienced a great many rewards and time no longer has the same meaning as it once did. Now our thoughts and ideas can be transmitted almost instantaneously. CPA firms have no doubt reaped the benefits of being able to streamline communication between clients and the firm and marketing is facilitated through websites that contain volumes of information that can assist in gaining clients, recruiting talent and promoting the profession.

However, there are also many risks associated with social media and the CPA and firm are not immune to those. Therefore, it is of utmost importance if you as going into public accounting that you are aware of the risks that are involved in using social and digital media to perform your work as well as risks that your personal information could be used against if you were to become involved in litigation. The following are some examples of where you could run into problems:

Increased Risk for Break of Client Confidentiality – CPAs are given confidential information, such as W-2s, tax returns, social security numbers, credit and debit card information, in order to do their work. You could unintentionally disseminate this sensitive information to others if you press the wrong button or choose the wrong recipient on an email.

Boasting can threaten Credibility – If a CPA firm were to be involved in litigation, an attorney will first seek out the free information that can be found online. If the firm or CPA were to have posted information on Facebook, LinkedIn or some other site that could be shown to be indefensible or inflated, this could be used to call into question the integrity of the firm or CPA.

Independence and Objectivity Issues – If an attorney representing shareholders who lost money due to a company presenting false financial information due to fraud can find information to indicate that the CPA lacked objectivity or independence as required for an audit, then that could be used against the CPA in a legal case. Correspondence between a CPA and a client that shows too familiar a relationship, no matter how innocent it may have been, could be used to assert a claim against the CPA for not discovering fraud due to a lack of objectivity or independence.

Discuss some internet and digital policies that would be beneficial for a CPA or a firm to institute to avoid having their employees or the firm encounter the type of problems discussed above.

Source - http://www.journalofaccountancy.com/issues/2016/mar/social-media-risks.html?utm_source=mnl:twtcpa&utm_medium=email&utm_campaign=09Mar2016

imagine you are the CEO of Salomon Brothers, where serious and terrible ethical breaches harmed their stakeholders, especially their employees. discuss what specific concrete steps you would take to restore your company’s reputation if it’s been sullied (dirtied)? why are these steps important?

Following is "Salomon Brothers" case

Salomon Brothers Before its implosion in 1990, Salomon Brothers was one of the premier global investment banks—perhaps the most direct competitor of the mighty Goldman Sachs. In December 1990, however, the head of Salomon’s government bond trading desk, Paul Mozer, decided to test the regulatory resolve of the U.S. Treasury. Annoyed by the federal limits on the percentage of Treasury bonds any one firm could bid for in Treasury auctions—the ceiling was 35 percent—Mozer devised a plan to evade the regulation. He submitted a bid for Salomon Brothers, and he submitted an unauthorized bid in the name of one of his customers. The two bids combined represented 46 percent of the auction—a clear violation of the rules. Mozer repeated this several times and in April 1991, he described the tactic to four Salomon executives: Chairman John Gutfreund, President Thomas W. Strauss, Vice Chairman John W. Meriwether, and General Counsel Donald M. Feuerstein. These executives told Mozer to stop his scheme but did not report him to the Securities and Exchange Commission. In June, the SEC subpoenaed Salomon for its auction records. In August, Salomon finally alerted the SEC to Mozer’s activities. Immediately following the disclosure to the SEC, Mozer was suspended from his job; shortly afterward, the board of directors asked the four Salomon executives to resign from the firm and fired Salomon’s outside law firm. The board named one of its own members, Warren Buffett, as interim chairman.61 The publicity generated by the Salomon scandal was devastating to the firm and its shareholders. Its market value dropped by over one‐third—$1.5 billion—in the week following the disclosure. Its debt was downgraded by various rating agencies, and major banks reevaluated Salomon’s loan terms. Because of the firm’s decreased liquidity, its ability to trade was dramatically reduced. In addition to the immediate financial debacle, teams of Salomon Brothers personnel left the firm. Weakened by the bad press and the defections of talent, Salomon Brothers managed to remain independent until 1998, when it was acquired by the Travelers Group and eventually it became part of Citigroup. This is just one more example of how personal hubris (on the part of Mozer) and refusal to report such hubris to the regulators (on the part of the firm’s executive team) can result in a death sentence, especially in the financial industry where reputation is everything.

What is the opinion or perspective on this idea of assessing risk in the internal control process? (See paragraph below to get an idea or answer the question.) Please raise thoughtful questions, analyze relevant issues, build on ideas, synthesize across readings and discussions, expanding the perspective, and appropriately challenging assumptions and perspectives.

Significance of assessing risk in the internal control process: In chapter 3, we learned that the purpose of the internal control process is “to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance.” (Page 38, paragraph 3). One component of the internal control process is “Assessing Risk,” which requires an organization to determine, analyze and mitigate the risks inherent in achieving its goals and objectives. Without identifying, understanding and alleviating the risks involved in accomplishing it mission, an organization will both miss opportunities to improve operations and hinder its ability to achieve its goals and objectives.

According to our text on page 62, paragraph 3, “governments exist to protect the health, safety and welfare of its citizens;” to this definition, I would add the point that governments must also be as accountable and transparent as possible. For a government, therefore, assessing risks involves looking at the operations which allow the government to achieve this mission and assessing the risks inherent in these operations. Once the risks are identified, it is helpful for the government to prioritize resources so that the most significant risks are addressed first.

I work in the finance department of a Town, and the director of Finance is continually looking for risks in our business processes. If any red flags are raised, she will work quickly to adjust business processes to mitigate these risks. For example, we are currently working to reallocate or return a large portion of developer fees that were collected in the early 2000s. These fees are collected from developers to pay for the potential off-site improvements – such as road widening, or traffic lights – needed due to the impact of the new development. By law, these off-site exactions are to be returned to the payer if they are not used for the intended purpose within 6 years. Through lack of internal control –especially the component of assessing risk – the Town ended up holding onto many of these fees passed the 6 year deadline. Recently, with staff turnover, the issue of the developer fees came up and the risk of holding onto these fees any longer – namely litigation, other legal troubles, and bad press – was addressed. We are now in the process of returning the developer fees that should have already been returned. Moreover, new processes were put in place to prevent this from ever happening again, including monthly reporting and better record keeping.

“This is really an odd situation,” said Jim Carter, general manager of Highland Publishing Company. “We get most of the jobs we bid on that require a lot of press time in the Printing Department, yet profits on those jobs are never as high as they ought to be. On the other hand, we lose most of the jobs we bid on that require a lot of time in the Binding Department. I would be inclined to think that the problem is with our overhead rates, but we’re already computing separate overhead rates for each department. So what else could be wrong?”

Highland Publishing Company is a large organization that offers a variety of printing and binding work. The Printing and Binding departments are supported by three service departments. The costs of these service departments are allocated to other departments in the order listed below. The Personnel cost is allocated based on number of employees. The Custodial Services cost is allocated based on square feet of space occupied and the Maintenance cost is allocated based on machine-hours.

Budgeted overhead costs in each department for the current year are shown below:

Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments.

Required:

1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department.

2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments.

3. Assume that during the current year the company bids on a job that requires machine and labor time as follows:

a. Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in (1) above. Then determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in (2) above.

As a group of engineers with basic Visual Basic skills, you are asked to provide your client with a user-friendly macro-enabled Excel spreadsheet that can be used to calculate the deflection and bending moment of a simply supported beam and a cantilever beam. The spreadsheet will provide a user-friendly interface to allow the client to: i) define the type of beam (i.e. a simply supported beam or a cantilever beam); ii) define cross sectional properties of a given beam structure; iii) define structural parameters and materials. e.g. a main page will allow for a user friendly interface that lists all the individual regular shapes that form a complex shape with options to add more regular shapes to the composition via a button etc. This could lead to another interface that will allow the client to define the parameters of each individual shape (preferably in another sheet). Once the parameters are entered the client will be returned to the main sheet where the details of the newly defined shape will automatically be added to the list of shapes. Once the entire cross-section has been defined, the Excel spreadsheet will calculate the overall second moment of inertia via a button. Challenges (Optional): • An image will automatically be produced when the various shapes are added. • More than one material can be added to the shape in this Excel sheet. STAGE 2 – PART 2 (Maximum Bending Moment and Deflection) Similar to Stage 1 of the group project, this part builds on the information obtained from part 1. Your clients are bridge engineers who want to calculate the deflection and bending moment of their beams. A button on the main page will allow the users to open a new interface to define the load and properties of the beam so that they can calculate the deflection and bending moment of the beam. The user will be given the option to choose any of the following load configurations on the beam. • Concentrated point load • Uniformly distributed load • Uniformly varying load Once all this information is entered, Excel will automatically compute and present the results of the beam’s deflection and bending moment. Hint: Formulae for simply supported beam and cantilever beam can be found online. Challenge (Optional): Plot the shear force diagram and the bending moment diagram. STAGE 2 – PART 3 (Report) Once the cross section and the maximum bending moment and deflection of beam have been defined, the user will be given the choice to press a button to automatically generate an A4 printable report based on the input and calculations produced in this Excel sheet. This report will summarise the parameters that the user has put into Excel and display the results in a way that is simple for the client to interpret.

i keep getting return value ignored and and conversion from double to float , possible data loss dont know how to fix the mistakes. if you could please fix it.

#define _CRT_SECURE_NO_WARNINGS
#define _CRT_SECURE_NO_DEPRECATE
#define _CRT_NONSTDC_NO_DEPRECATE
#include
#include

void O_Read_age_1()
{
   int sum = 0;
   int i;
   for (i = 1; i <= 2; i++)
   {

       int temp;
       printf("please enter the age of employee %d:", i);
       scanf("%d", &temp);
       sum += temp;
   }

   printf("\n");
   printf("The total age of all employees is%d\n", sum);
   return;
}
float O_Read_Salary_1()
{

   float sum = 0;
   int i;
   for (i = 1; i <= 2; i++)
   {
       printf("PLease enter the salary of the employee %d:", i);
       float temp;
       scanf("%f", &temp);
       for (; ((temp < 1000)) || ((temp > 6000));)
       {
           printf("Salary should be from 1000 to 6000:");
           scanf("%f", &temp);
       }
       if (temp <= 2150)
       {
           float inc = temp * 0.2;
           sum += temp;
           sum += inc;
       }
       else if ((temp > 2150) && (temp <= 4150))
       {

           float inc = temp * 0.15;
           sum += temp;
           sum += inc;
       }
       else if ((temp > 4150) && (temp <= 5150))
       {
           float inc = temp * 0.1;
           sum += temp;
           sum += inc;
       }
   }
   return sum;
}
void O_Read_Gender_1()
{
   int males = 0;
   int females = 0;
   int j = 0;
   char ch;
   for (j = 0; j < 2; j++)
   {
       printf("Enter the gender of employee %d (F or M):", j + 1);
       ch = getchar();
       scanf("%s",&ch);
       printf("\n");
       if (ch == 'F')
       {
           females++;
       }
       else if (ch == 'M')
       {
           males++;
       }
   }
   printf("The number of female employees is %d \n", females);
   printf("The number of male employees is %d \n", males);
  
   return;
}
void O_Calculate_Bonus_1()
{
   int bonus = 0;
   printf("Enter the rank of the company: %d");
   printf("\n");
   int Rank;
   scanf("%d", &Rank);
   printf("Enterr the ID of the company: ");
   int id;
   scanf("%d", &id);
   printf("\n");
   if (Rank == 1)
   {
       bonus = 15;
   }
   if (Rank == 2)
   {
       bonus = 10;
   }
   else
   {
       bonus = 5;
   }
   printf("Company ID = %d\n", id);
   printf("Rank= %d\n", Rank);
   printf("Bonus = %d", bonus);
   printf("Student: Bader Alostad Section:O1 ID:45191 - Semester Spring 2 online Press any button to continue...\n");
   return;
}

int main()
{
   float ans = O_Read_Salary_1();
   printf("\n");
   printf("The Function Read_Salary return the value %f \n", ans);
   O_Read_age_1();
   O_Read_Gender_1();
   O_Calculate_Bonus_1();
   return 0;

}