1. (TRUE or FALSE?) Computing the present value involves compounding present cash flows forward to the future at an appropriate discount rate.
2. (TRUE or FALSE?) The future value factor for 10 years at 15% with annual compounding is calculated as (1 + 0.15)^10.
3. (TRUE or FALSE?) With simple interest, the interest earned each period is paid only on the interest earnings from the previous periods.
In: Finance
In: Accounting
Rosie deposit a single payment of $5,000 into a savings account. at the end of 8 years, Rosie has $8,800 in the account. find the nominal rate compounded quarterly earned by the account.
1. set up the equation of value using the numbers from the problem.
2. find the nominal rate. solve the problem using the algebraic method and showing the steps you used in arriving at your answer.
In: Finance
An investment of $13,000 was growing at 4.5% compounded quarterly.
a. Calculate the accumulated value of this investment at the end of year 1.
Round to the nearest cent
b. If the interest rate changed to 5% compounded monthly at the end of year 1, calculate the accumulated value of this investment at the end of year 5.
Round to the nearest cent
c. Calculate the amount of interest earned from this investment during the 5-year period.
In: Finance
Read through the Tree Trimming Project case in chapter 13 of the textbook. This case refers to the earned value (EV) of the owner, Will Fence’s Tree Trimming business. Will briefly describes his techniques for EV. Based on the description provided in the case, is Will using EV?
Answer the corresponding question provided at the end of the case (300-500 words). Use references from the reading materials to support your response.
In: Operations Management
The New-York-based mutual fund Apex has invested in the Paris-traded Etablissements Michelin at the cost of € 74 per share. One year later Apex liquidates its investment selling Michelin stock at €81, having earned a dividend of € 2.40 per share. Over the investment period the euro declined by 2.7%. What was Apex total return from investing in Michelin stock
In: Finance
In: Computer Science
Marcetta, Wong & Palmirotto Investment Company, a corporation dedicated to brokerage, has as General Manager Sherry Faye Stull, in addition to being the principal officer the which is in charge of the portfolios of rich and famous clients.
The General Manager disagrees with the system proposed
by Financial Investment
Decision Support System Group because it does not think it's right
for the needs of the
company.
In the investment firm there is a variety of portfolio
managers, some of the Portfolio managers were hired by their
clients to be the managers from the sale and purchase of bonds and
shares, these are subject to individual and lucrative arrangements
both for them and for the investment house others are employees of
the firm and are assigned to cases as required. Some clients
delegated to their administrators all the decisions that had to do
with their portfolios, others gave them freedom of partial
decision, that is, they imposed restrictions of investment in the
type of investment and the amount of investment where they do not
have to be consulted, Any investment outside these parameters
must
be consulted with the client.
The house investment rate is 2.3% of the first million
dollars in investments and .72%
in excess of the first million. At least once a year portfolio
managers are meet with their clients to review the contracts, and
specifications on the types of investments and investment
strategies.
There are clients who are aggressive about their
investment strategies and they like the
risky investments that pay higher profits, while others are more
conservatives and prefer a lower risk, greater confidence in the
investment and that leaves a gain although less, stable.
Portfolio managers try to vary the type of investment
between bonds, shares and
other instruments, in fact, the most aggressive have more
investments in stocks, while
the most conservative have a high proportion in government bonds. Once established the strategy and chosen the main investments the managers are dedicated to buy or sell when the prices of the instruments are outside the regular price or when They look lucrative, or when their client needs more cash.
They take care not to make many transactions if they are not necessary since each transaction It costs a commission to your client With the advent of Internet portals that are dedicated to taking investments, such as Ameritrade, Charles Schwab Online Investment, and others, the Board of Directors entrusted a project that will implement an information system that will automate most of the decisions on portfolios. Will use mathematical-financial procedures to examine each portfolio daily to find better and more advantageous ways to distribute the investments, as long as they are consistent with the strategies discussed with their clients.
Since portfolio managers were busy in meetings with their clients, the most outside the city, the system could have the advantage of making time transactions short taking departure of the fluctuations of the market, for this it would be given to the system that the maximum of the portfolio tied to these short-term investments would be 10% of any portfolio Of the remaining 90% the portfolio manager together with his client would have the power of decisions.
General Manager, Sherry Faye Stull understands that you have to compete with the house of investments online, using a system that is online, since the proposed one although it takes advantage of the market when portfolio managers are busy, the investor who invests in line does not want to know about intermediary, what he wants is to make his investment, benefit from the reports from the investment house and any global advice on "hot" investments of the moment.
Furthermore, she understands that this system benefits
only rich investors, but she
understands that in the market there are groups of investors who
are willing to invest but not They have large amounts that can be
paid by an individual portfolio manager.
Questions.
1. Harmonize the ideas of the General Manager and the Financial Investment Automated Decision Support System Group in such a way that both the Board of Directors and the General Manager are pleased and can draw up a strategic plan based on the system to be implanted.
2. Of your opinion on investments through the Internet
and if the house of established investor like Smith Barney, UBS
Paine Webber, Merrill Lynch among others, they should look at this
possibility as an option or as a necessity. Justify your answer
based on factors such as investment in systems of
information Vs. strategic advantage, market movement and any other
Valid approach to strengthen your position.
3. How can you include the strategy of using the Cloud as part of a resource for virtual storage? How would it alter the technology of Data Banks? (Database) necessary for Marcetta, Wong & Palmirotto Investment Company. see this as an alignment of business with the strategies of information technology.
4. Describe an information protection system that you
would recommend for this
situation. It can be one or more than one. Be as specific as
possible in the identification of security processes and how they
would be used to project the information. Justify your answer.
5. With the advent of electronic commerce and corporations with a presence virtual that are made public like Amazon among others. The offering of shares and bonuses can also be in a non-classical way, since you have to rely on the solidity of a corporation that "does not exist physically".
Like you I would recommend that the offer, purchase and administration of these instruments of these companies? What would be your recommendation to modify the system to manage the administration of the portfolios with instruments of virtual companies? Within your explanation, include critical points of the system, strategic planning of information technology.
In: Accounting
There is a multi-cuisine restaurant which offers fast food along
with Indian, Mexican, and Chinese food which mainly focuses on
students and communities from these countries. There are
international student chefs from these communities who will prepare
cuisines from these respective countries on a weekly basis.
Firstly, as a business what will be the 3 problems you will try to
solve via these services? Essentially, why does this company
exist?
Secondly, what are the Unique value proposition – What makes this
product/service unique? Your philosophy and/or purpose. This guides
your actions, spells out your overall goal, and guides
decision-making. Also, describe your product/service in detail,
focusing on customer benefits.
In: Operations Management
Assignment One: Description of Your Individual Entrepreneurial Project
Please describe your own individual project which may be unique or you had been thinking about since it has invented or innovative ideas.
Need to include description of the product, service, or idea you intend to do. The competitive advantage of your output and what make you think it is sustainable? The estimated cost of your project and some financial expectations. You may include any other details that you think it is appropriate and help in clarifying your ideas and expectations.
In: Operations Management