Time Value of Money Assignment | Homework For You

TIME VALUE OF MONEY

Don't use plagiarized sources. Get Your Assignment on
Time Value of Money Assignment | Homework For You
Just from $13/Page
Order Now

Jeff Warren after consulting with some PhD students and his Financial Advisor decided to register his server building company as S corporation, which is a special designation that allows small businesses to be taxed as if they were a sole proprietorship or a partnership rather than as a corporation whilst at the same time enjoying limited liability of a corporation. Jeff is satisfied with this choice because he is aware that one of the disadvantages of a corporation is the double taxation of corporate earnings.Homework For You

Jeff is determined to make sure his business succeeds and has a long-term plan of expanding his business to some emerging countries. He has been reading some articles in finance journals about time value of money and how he can apply the concept to manage his finances and expansion plans. The time value of money holds that it is better to receive money sooner than later. Money that is available today is worth more than money to be received in the future. This is so because money in hand today can be invested to earn a positive rate of return, thereby producing more money tomorrow. On his google search he came across this article:

Schmidt, C. E. (2016). A journey through time: From the present value to the future value and back or: retirement planning: A comprehensible application of time value of money concept. American Journal of Business Education, 9(3), 137 – 143.

The article discusses a contemporary financial planning problem of correctly solving time value of money problems and identifying the cash flows and timing necessary for financial and investment decisions. Schmidt (2016) explains with practical examples the applications of the concept of time value of money to retirement planningvaluing stocks and bondssetting up loan amortization schedules, and making capital budgeting decisions. Jeff does not fully understand some of the finance terms such as future value of compounding, present value and discounting, perpetuity and annuities etc. that the article discussed. He believes that once he grasps these time value of money concepts, he will be able to make sound financial and investment decisions. His major concern is that these concepts require application of some basic quantitative techniques which he tried to avoid at the graduate school two years ago.

Jeff has approached you for help in answering the following questions:

a. Suppose Jeff has $85,000 to invest in an IRA at an interest rate of 10% per year for his retirement in 10 years. How much money can he accumulate at the end of the time period?

b. Jeff wants to send his daughter to college in 18 years. He has assumed that he would need $100,000 at the time in order to pay for her tuition, room and board, school supplies etc. If he can earn an average of 8% per year, how much money does he need to invest today as a lump sum to achieve that goal?

c. Jeff wants to move $50,000 from his checking accounts and invests it in money market securities for 3 years. The money market earns 7% interest compounded annually. How much can this investment grow at the end of the investment period?

d. Jeff wants to find the present value of the following uneven cash flows he expects to receive in the next 3 years from his business.

Year Cash Flows
2020 $25,000
2021 $20,000
2022 $15,000

What is the present value of the cash flows assuming the discount rate is 7%?Homework For You

e. Jeff wants to invest in preferred stocks issued by Camden Company. The company pays $3 dividend per share on its stock. The dividend is expected to grow at a constant rate of 10% per year indefinitely. If Jeff requires a rate of return of 15% on the stock, what is the (estimated) current price of Camden stock? Get Finance homework help today

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

At Myhomeworkwriters.com, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.

Professional Academic Writers

With Myhomeworkwriters.com, every student is guaranteed high-quality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.

Affordable Prices

Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.

On-Time delivery

My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.

100% Originality

Myhomeworkwriters.com maintains a zero-plagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarism-free papers. We are very keen on avoiding any chance of similarities with previous papers.

Customer Support 24/7

Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email: support@myhomeworkwriters.com.

Try it now!

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Homework Writing Services

My Homework Writers holds a reputation for being a platform that provides high-quality homework writing services. All you need to do is provide us with all the necessary requirements of the paper and wait for quality results.

Essays

Essay Writing Services

At My Homework Writers, we have highly qualified academic gurus who will offer great assistance towards completing your essays. Our homework writing service providers are well-versed with all the aspects of developing high-quality and relevant essays.

Admissions

Admission and Business Papers

With Myhomeworkwriters.com, we will help you secure a position at your desired institution. Our essay writing services include the crafting of admissions papers. We will still help you climb your career ladder by helping you write the official papers that will help you secure a job. We will guide you on how to write an outstanding portfolio or resume.

Editing

Editing and Proofreading

Myhomeworkwriters.com has a professional editorial team that will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper posses quality and originality.

Coursework

Technical papers

My Homework Writers harbors professional academic writers from diverse academic disciplines. As such, we can develop homework writing services in all academic areas. The simplicity or complexity of the paper does not affect the quality of homework writing services.