20.10 FUTURE DAMAGES NO REDUCTION TO PRESENT VALUE As I have instructed you, you may decide it is reasonably probable that the plaintiff will have some future [non-economic] losses resulting from the (accident). In fixing an amount for future [non-economic] losses, you must disregard the fact that any amount you Read more…
To calculate Present Values, you need three things: The Time Value of Money and Net Present Value Having a dollar today is worth more than having the right to receive a dollar in the future Calculating Present Values will tell you how much less that dollar in the future is Read more…
Capital Budgeting Decisions Typical Capital Budgeting Decisions Typical Capital Budgeting Decisions Capital budgeting tends to fall into two broad categories . . . Screening decisions. Does a proposed project meet some preset standard of acceptance? Preference decisions. Selecting from among several competing courses of action. Time Value of Money A Read more…
ANSWERS TO REVIEW QUESTIONS 4-1 Future value (FV), the value of a present amount at a future date, is calculated by applying compound interest over a specific time period. Present value (PV), represents the dollar value today of a future amount, or the amount you would invest today at a Read more…
DEFINITIONS: PRESENT VALUE OF AN ANNUITY Present value of an annuity: lump sum amount that equals the value now of a set of equal periodic payments to be paid in the future. Formulas and Examples: PV =.(PMT)K, where Example: Find the present value of an annuity with periodic payments of Read more…