Time Value Of Money Essay - 1875 Words

Time Value of Money The time value of money serves as the foundation for all other notions in finance. It affects business finance, consumer finance and government finance. Time value of money results from the concept of interest. The idea is that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. Time value of money can be illustrated by the fact that a dollar received today is worth more than a dollar received a year from now because todays dollar can be invested and earn interest as the year elapses. Implicit in any†¦show more content†¦In addition, individual citizens research the best securities to invest in order to get the most return on their risk involved. The financial applications that make up the time value of money are vast in the scope represented. Time value of money applications assist with domestic as well as international market transactions. Applications of the time value of money are essential in the following: International Capital Markets, United States Capital Markets, the supply of Capital Funds, the organization of securities markets, and finally, the regulation of securities markets. International Capital Markets are a place where the concept of time value of money is applied. As a result of a growing global economy, international capital markets have increased in the last decade to become larger, more efficient, and more competitive in the new millennium (Block Hirt, 2005). Many companies, especially those from the United States search the international markets in order to raise debt capital and increase company liquidity. Businesses invest in international markets, not to expect a return on present value, but on the expectation of an increased value in the future. The next opportunity for an application of the time value of money is in Government Securities, federally sponsored credit agencies, as well as state and local securities. Government Securities are ways that the, U.S. Treasury can manage the federal governments debt to balance the flow of fundsShow MoreRelatedTime Value of Money1028 Words   |  5 Pagestoward understanding the relationship between the value of dollars today and that of dollars in the future is by looking at how funds invested will grow over time. This understanding will allow one to answer such questions as; how much should be invested today to produce a specified future sum of money? Time Value of Money In most cases, borrowing money is not free, unless it is a fiver for lunch from a friend. Interest is the cost of borrowing money. An interest rate is the cost stated as a percentRead MoreTime Value of Money1033 Words   |  5 PagesTime Value of Money (TVM), developed by Leonardo Fibonacci in 1202, is an important concept in financial management. It can be used to compare investment alternatives and to solve problems involving loans, mortgages, leases, savings, and annuities. TVM is based on the concept that a dollar today is worth more than a dollar in the future. That is mainly because money held today can be invested and earn interest. A key concept of TVM is that a single sum of money or a series of equal,Read MoreTime Value of Money967 Words   |  4 PagesTime Value of Money The time value of money relates to many activities and decision in the financial world. â€Å"Understanding the effective rate on a business loan, the mortgage payment in a real estate transaction, or the true return on an investment depends on understanding the time value of money† (Block, Hirt, 2005). The concept of time value of money helps determine how financial assets are valued and how investors establish the rates of return they demand. Many different types of companiesRead MoreTime Value of Money2180 Words   |  9 PagesFinance Ââ€" Time Value of Money We earn money to spend it and we save money to spend it in the future. However, for most people spending money in the present time is more desirable since the future is unknown. We can gratify the desire to spend money today rather than in the future by knowing the basic law in finance Ââ€" time value of money. This means that a dollar today is worth more than a dollar at some time in the future. Unfortunately, people very often want to buy things at the present time whichRead MoreTime Value of Money3904 Words   |  16 PagesTime Value of Money Problems 1. What will a deposit of $4,500 at 10% compounded semiannually be worth if left in the bank for six years? a. $8,020.22 b. $7,959.55 c. $8,081.55 d. $8,181.55 2. What will a deposit of $4,500 at 7% annual interest be worth if left in the bank for nine years? a. $8,273.25 b. $8,385.78 c. $8,279.23 d. $7,723.25 3. What will a deposit of $4,500 at 12% compounded monthly be worth at the end of 10 years? a. $14,351.80 b. $14,851.80 c. $13,997.40 d. $14Read MoreTime Value of Money5284 Words   |  22 Pages12/9/2012 Chapter 9 The Time Value of Money 1 Chapter 9- Learning Objectives ïÆ' ¼ Identify various types of cash flow patterns (streams) that are observed in business. ïÆ' ¼ Compute (a) the future values and (b) the present values of different cash flow streams, and explain the results. ïÆ' ¼ Compute (a) the return (interest rate) on an investment (loan) and (b) how long it takes to reach a financial goal. ïÆ' ¼ Explain the difference between the Annual Percentage Rate (APR) and the Effective Annual RateRead MoreTime Value of Money2092 Words   |  9 PagesTime Value of Money The time value of money (TVM) or, discounted present value, is one of the basic concepts of finance and was developed by Leonardo Fibonacci in 1202. The time value of money (TVM) is based on the premise that one will prefer to receive a certain amount of money today than the same amount in the future, all else equal. As a result, when one deposits money in a bank account, one demands (and earns) interest. Money received today is more valuable than money received in the futureRead MoreTime Value of Money2124 Words   |  9 PagesTime Value of Money: Simple Interest versus Compound Interest Outline I. Applications of Time Value of Money 1.1 Example One 1.2 Example Two 2. Interest 2.1 What is Interest? 2.2 Three Variables of Interest 1. Principal 2. Interest Rate 3. Time 2.3 Why is Interest Charged? 3. Simple Interest 3.1 What is Simple Interest? 3.2 Simple Interest Formula 4. Compound Interest 4.1 What is Compound Interest? 4.2 Compound Interest Formula Read MoreTime Value of Money712 Words   |  3 Pageswill pay the bank over the life of the loan? $123,945.04 4. What is the effective rate of interest on a CD that has a nominal rate of 7.25 percent with interest compounded monthly? EAR = (1+.0725/12)^12 – 1 = 7.5% 5. What is the future value of $4,950 placed in a saving account for six years if the account pays 3%, compounded quarterly? PV = 4,950 N = 6 x 4 = 24 I =3/4 = .75% Pmt = - FV = $5,922.24 6. Your firm, Vandelay Industries, has just leased a $32,000 BMW for youRead MoreTime Value of Money and Present Value1154 Words   |  5 Pagescollege 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $23,000 per year per child, payable at the beginning of each school year. The annual interest rate is 5.5 percent. How much money must you deposit in account each year to fund your children’s education? Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college Solution: Cost of 1 year at

The Impact Of Immigration On The Culture Of Host Country

Camarota (2007, p.1), a director of Research at the Center for immigration Studies in Washington, D.C, reports the data from Censu Bureau, the United States department of commerce that provides data of people, business and economy, there are 1.6 million legal migrants and illegal migrants come to the U.S annually. Camarota goes on to say that the immigrants now take up one-eighth of total population who residing in the U.S. Namely, the number of immigrant population with a rapid growth. Some people say that the government should allow immigration. While immigration can positively impact on the culture of host country, it is no denying that illegal aliens must reduce the work opportunity of native, increase the cost of host country, and trigger social unrest. Convincing arguments clearly be made that immigrants have threaten the work opportunity of natives. Most of the advocates who are of this opinion argue that there are increase competitive pressure of labor market for the local wo rkers. Farkas points out that people realize they cannot fulfill their American dream if they were not hard-working (2003, p.2). In other words, there are a vast number of foreign-born who choose immigrant to the U.S. in pursuit of the American dream of freedom, happiness and opportunity. They work hard since nothing is free. According to Waldinger (as cited in Stansfield, 2013, p. 505), new arrivals with the power of attraction by the boss due to their prestige of hard work whichShow MoreRelated Influences of Immigration on U.S. Provinces Essay1117 Words   |  5 Pagesto whether or not U.S. should limit immigration quotas. On one hand, immigrants enable U.S. to compete in international competition and are one way to help alleviate labor shortages in certain demographic trends (Liebig, 2011). Immigration has impact economic trends by highly participating in the labor market and benefiting homeowners and landlords. Immigrants also influences diversity which enables people in the U.S. to be open minded about other cultures. On the other hand, public opinionsRead MoreOpen Border Policy and Illegal Immigration1844 Words   |  7 PagesIllegal Immigration Introduction Immigration is one of the contentious issues that continue to elicit mixed reactions from different parties. In most western economies, debates on immigration policies have been on the rise in the recent decades. Whereas the international human rights have confirmed that freedom of movement is one of the basic human rights and hence no one can be deprived, most governments have put restrictions on immigration. Furthermore, the enactment of open immigration policiesRead MorePros and Cons of Immigration944 Words   |  4 PagesI. Introduction Nowadays, Immigration, which is a phenomenon of migration, is very normal and popular in the world. Furthermore, in the world, many countries have the large number of people who immigrate because of many reasons likes finding suitable jobs or new place to live. Many people think that immigrants will give them many problems about the economy and society. However, other people think that immigrants bring many profits for their countries. In my opinion, I think that all thingsRead MoreTrade Policy For The New President Essay1162 Words   |  5 Pagesfor the New President: Concerning Immigration In the recent decades, member countries of the Organization for Economic Cooperation and Development (OECD) have seen rapid growth in the foreign-born population which has stimulated research on the socio-economic impacts of immigration. There has been great amounts of research done to produce literature like that of Gould (1994) that propose that immigration has proven statistically to have a significant positive impact on international trade. ConsideringRead MoreThe Positive and Negative Aspects of Job Migration943 Words   |  4 Pagesfrom their native countries to foreign countries. It has many reasons such as educational and economical, religious and political problems. Reason of labor migration lack of work opportunities, and receive sufficient income at home. As we know, the number of people who migrate from their native countries is getting higher and keep increasing. According to statistics, Number of labor immigrants was increase to 145855 all over the world between Ap ril and June 2013(Immigration Statistics, April toRead MoreThe Impact Of Immigration On The United States1577 Words   |  7 PagesBeing the only Canadian born in my family, integration and immigration were never a concern of mine. However, my older brothers and parents had to go through this entire process in the 90s. Back then it was much different than now. Integration and immigration in Canada was relatively easier than in countries such as Spain, which will be the focus of this essay. Immigration to Spain is quite new. In the 1990s, it became more common, and then over the years increased significantly. The drastic increaseRead MoreThe Pros and Cons of Immigration in Buenos Aires Essay example984 Words   |  4 Pagesfrom neighboring countries, primarily from Bolivia and Paraguay. The indigenous people of Buenos Aires have a half-humorous nickname - Porteno . Population of the capital and its suburbs is growing rapidly, including through immigration and guest workers from Bol ivia , Paraguay , Peru and other neighboring countries. The city is very multicultural, but the main separation occurs along class communities and not on racial lines , as in the U.S. Evidences on the impact of immigration on the labor marketRead MoreThe Effects of Migration725 Words   |  3 Pagesmigrants even do not know what awaits them in a new country. Before thinking about the effects of migration, people should draw a distinction between emigration and immigration. The immigration is beneficial, whereas the emigration is totally disadvantageous for a country. People from industrially backward regions do not value their current lifestyle and conditions, and they cannot resist the lure of a wonderful life in economically advanced countries. Without thinking about the consequences that willRead MoreWe All Hear And Chat About The War And Violence That Happens1128 Words   |  5 Pagesthat their homes and country has suddenly disappeared? Imagine waking up in the morning; in a country you once called home and now is completely gone. Everything you worked your whole life for is vanished. You may be one of the few people who are fortunate to still have family, or perhaps you’re just standing alone wondering if they are alive or if you will ever see them again. This is how most refuges life start; a refuge is a person who has been forced to leave their country in order to escape warRead MoreDiscrimination Against Immigrant Labor Essay964 Words   |  4 Pagesmobility of human resources between countries is a key driving force of the currently ongoing economic and regional development all over the world. It is indisputable that the immigration of international labour force would exert many positive and important impacts on the economic, cultural and social structure of both migrant-receiving and migrant-sending countries. Actually, the trend of temporary and permanent immigrants increasing in some western countries began to gain momentum in recent years

Enders Game Critical Essay Paper free essay sample

Henry Truong Mr. Wilk English 2 10 May 2013 Hidden Dangers Before 13 â€Å"Because never in my entire childhood did I feel like a child. I felt like a person all along—the same person that I am today. † (Card xvii) In Orson Scott Card’s novel, Ender’s Game, Ender Wiggin, a little 6 year old boy, is recruited into Battle School by Colonel Graff and the International Fleet to save mankind from an alien species called the Buggers. The Buggers have been humankind’s main enemy and they know very little of the Buggers beside that they are the bad guy. There has already been two fights between human’s and buggers. During both encounters, the humans barely survived, and they now must prepare for the third fight. Ender’s Game is a journey of little Ender Wiggin, who was always being bullied for being a â€Å"third†, and how everything changed when he got recruited at the age of six to train in order save the world. Although the children in this book are trained and built to be saviors of Earth, on the other hand are treated as children and kept in the dark. †¦he [Card] examines why referring to characters as ‘children’ does not necessarily make them well-rendered child characters. † (Kelly 112) In David J. Kelly’s critical essay, he starts off be stating that, and he continues to explain some of the characters who are referred to as children but are not really â€Å"children†. We may see kids Truong 2 as innocent and not know any better, but Card believes that behind that little innocent face could be earth’s savior or doom. For example ,Ender is one of those kids, â€Å"†¦in physical struggles he lashes out with a fear-driven response that he has no power over, a cyclone so violent that he does not even see the results†¦Ã¢â‚¬  (Kelly 114) Like the kid version of the hulk, losing control when he gets bullied, and not knowing what he has doing until he gains back conscious of his own self. He doesn’t want to hurt others, but he ends up doing it anyways. In the next essay by, Tim Blackmore, he talks about the, â€Å"†¦military paradigm Ender must operate to survive. (115) As you may know, Charles Darwin’s natural selection where you must adapt to survive, as Ender faces Battle School, he greatly changes but also psychologically breaks down and becomes the world’s most greatest general at the age of 12 and earth’s savior against the Buggers. Tim Blackmore also explains how, â€Å"Card forces the reader to move between two viewpoints: that of the suspicious, man ipulated child and that of the paranoid, utilitarian machine worker. (116) Card’s unique point-of-view of the characters in the book, makes us see kids differently, â€Å"Card endows each of the three Wiggin children with a particular strength: Peter is a conqueror, another Alexander; Valentine is an Empath; and Ender is a warrior †(Blackmore 118) I believe children’s have hidden potential, maybe not like Ender to fight and strategize, but things we do not usually expect in kids. Ender differs from all the other kids in the beginning . In this society there is a limit two kid per family. The government has Ender’s parent to have a third child, Ender. Since having a third child in this society is so different, Ender had been bullied during his time in regular school. He becomes constantly bullied for being a â€Å"third† as they call it. Truong 3 As a result of being bullied, he lashes out and beats the crap out of the bully Stilson. By that I mean he knocks him out with one hit and Stilson falls to the ground but then he starts kicking him again in his spine and then the crotch, setting an example to everybody else not to mess with him. Knocking him down won the first fight. I wanted to win all the next ones, too. So they’d leave me alone. † (Card 19) This really surprised me. His philosophy of knocking him down only won the first battle, and to end all of the future battles, he continues to beat up Stilson to scare off all the other bullies. This is what happens at school, at home it gets much worse for little Ender. He gets beat up and th reatened by his older brother Peter. When the parents are out and the kids are home, Ender becomes most vulnerable to Peter. They both play games together, but it get out of hand real quick. Peter comes from behind and hits him on the head causing him to fall, and with that he shoves his foot in Ender’s calling him a bugger spy and then threatens to kill him and dissect him. Luckily for Ender he had Valentine as his guardian angel, talking Peter out of his violent attacks. Peter is just a psychopath who enjoys other suffering, while Ender just keeps quite. I do not know why he does not fight back, but I believe that he does not want to hurt his family. Ender is a unique character for using his wits to help him fight for his lack of strength and size at the age of six, . You do not see this everyday at the playground during recess do you? Or when you leave your kids at home, you did not expect them to threaten and actually attempt to kill each other do you? Just because they are children does not make them â€Å"children†. Life is about to kill or be killed, and at Battle School there is something called the, â€Å"Battle Room†. The battle room is zero gravity room where teams fight each other with Truong 4 tun guns, and if you get shot with one you are temporarily paralyzed in a certain area depending on where you got shot. Two teams fight until one team gets to the other side with four of their team members to open the gate by touching panels on each corner’s of the gate. When Ender arrives to Battle School, the Battle Room turns into a room that, â€Å"†¦destroys individuality while it creates a unitary killing machine. † (Blackmore 117) While being the one of the youngest there, he quickly outranks many people and becomes the best and everyone fears him. There was a point where Ender had to go against 2 teams, and Ender won although he was clearly outnumbered. As the days pass by, the school slowly breaks into Ender’s mind driving him crazy. He’s constantly â€Å"playing† against other teams day and night, with him and his army tired and weak to the point where they barely have any sleep. The worst part of it all is when Ender leads one team to victory; he is re-assigned into a different team, having to fight his fellow comrade. Ender quickly breaks down to the point where he pushes everyone away from him, knowing how he has to face his friend one day. The Colonel and the school’s method of training Ender, is to beat him to the point of death, only to bring him back to life only to beat him again. Ender was able to keep his sanity though and survive the torture, but as a result turned into something else. From a little boy, grew Earth’s last defense†¦a 12 year old boy. I would not have thought my life would be in the hands of a 12 year old boy, would you? After Battle School and a break, he then was shipped to a space center. There he played on simulators with other of his Battle School friends and oes going through the simulations of fighting buggers. Each day doing simulations that get harder each day. Truong 5 Although Ender does not enjoy doing it he has to. His teacher, Rackham, tells him he must not quit and he must be prepared for later on. Day and day after day of hours of training, he comes to his final examination. His final exam is a simulation where he’s in a position where he is greatly outnum bered. Many people would believe that defeating the simulation is impossible, but Ender wants to end it all and becomes determined to defeat the simulation. With that, he miraculously pulled it off and beat the simulator. As he won, all the adults around him were cheering and celebrated. Ender was puzzled not sure what was going on, found out that al the simulators were actual real fleets, and he actually just destroyed the alien race. Ender became furious that they just used him like that. Being kicked to the shadows like a kid, being lied to and used by the adult. Thinking it was all a game, Ender actually eliminated an alien race. Graff responds to Ender’s anger with, â€Å"Individual human beings are all tools, that the others use to help us all survive. † (Blackmore 116) Training little kids to become elites of the future to help protect earth, and yet they keep them in the shadows, lying to them and using them as weapons rather than human beings. No wonder Ender’s furious at Graff, being used like that, I would be too. This book Ender’s game reminds me of â€Å"Lord Of The Flies† and all the little kids who change from little elementary students, into savages. Only difference was they turned into savages due to their circumstance, being isolated on an island and all. While in Ender’s game they were trained to become savages. When we think of kids we think of games and recess, but Orson Scott Card believes that just because they look like a kid does not mean they will act like one. Like Truong 6 the saying, â€Å"Do not judge a book by its cover. † Through out this process I learned to expect the unexpected, because I can not automatically assume things from appearances, but from by how they behave and act. Society makes it that when we see a little kid, we automatically view them as little and innocent. Card however sees things differently, what seems to be a little kid could actually be an evil genius in disguise. As a critical reader, I will focus a lot more on why the author made the character the way he/she is, and how that character develops through out the novel. Work Cited Card, Orson Scott Ender’s Game. New York, NY. Phoenix Rising, 1991 Kelly, David J. â€Å"Ender’s Game—Criticism† Volume 5,112-5 Blackmore, Tim. â€Å"Ender’s Game—Criticism† Volume 5,115-8 Volume 5, 118-121

Strategic Analysis of the Pharmaceutical Industry free essay sample

The pharmaceutical industry is today still one of the most inventive, innovative and lucrative of the so-called  »high-tech « industries; however, we may say that the pharmaceutical industry has been adapting itself more and more to strategic market trends and market demands. Further strategic development of the world pharmaceutical industry shows clearly its consolidation, concentration and strong market orientation. The pharmaceutical industry today, with no doubt, unites one of the biggest potentials of all mankind.Development of a brand new drug is estimated to need an investment of more than $1. 2 billion and takes more than 12 years to bring it as a finished, legally registered and approved product to the market place (Pharma Strategy Group, 2005). This is, at the same time, a very complex, comprehensive and highly risky job with no final guarantee that the potential new product might succeed on the market and bring back revenues. If a pharmaceutical company wants to achieve market success with a brand new product, it needs to invest strongly into marketing and sales activities. We will write a custom essay sample on Strategic Analysis of the Pharmaceutical Industry or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Thus, by no surprise, we may conclude that basic research and development (RD), together with marketing and sales activities are two of the most important operative and even more strategic priorities of the world pharmaceutical industry. Here, the biggest investments of the pharmaceutical industry are put by all means. Having analysed these figures, we have found that the biggest, inventive world pharmaceutical companies invest, on average, approximately 16% of their sales into RD and even more, about 26% or more into marketing and sales activities (Kesic, 2006).However, these ratios, especially the one of RD investment, are even higher with the specialists, like biotechnology and pharmacogenomic companies, and much lower with the generic pharmaceutical companies (Kesic, 2006). As mentioned, the world pharmaceutical industry is structurally not unique, as pharmaceutical companies 60 Management, Vol. 14, 2009, 1, pp. 59-76 D. Kesic: Strategic analysis of the world pharmaceutical industry differ according to their basic mission, performance and strategic development.We can define three different groups of the world pharmaceutical companies: pharmaceutical companies which primarily work on basic research, development and marketing and sales of brand new, inventive, original pharmaceutical products (called originators); pharmaceutical companies which primarily work on development and sales of generic products (called generic producers); and pharmaceutical companies which primarily work on basic research and development of biotechnology and pharmacogenomic products and technologies of new delivery systems (called specialists).We need to shortly illustrate the size of the world pharmaceutical market. The world pharmaceutical market has been growing steadily in the last years. In 2005, it posted total sales of $602 billion and a growth rate of 10%. The fastest growing world markets and regions are the markets of China, Central and Eastern Europe (Russia, Poland, Romania) and certain markets of Latin America (Brazil, Mexico, Chile). Nevertheless, it is estimated that the world pharmaceutical market will grow by an average of 7% CAGR (Compounded Annual Growth Rate) till the year 2010 (Pharma Strategy Group, 2005).