Time Value Finance Assingment Help With Solution

Posted on March 16, 2017

Time Value Finance Assingment Help With Solution

Use the following list for the answers to questions 1 through 6:

a) Creditor
b) Preferred Stock
c) Common Stock
d) Broker’s commission
e) Agency problem
f) Proprietorship
g) Partnership
h) Corporation
i) Cooperative
j) Interest
k) Fixture
l) Estate
m) Lien
n) Dividend
o) Limited Liability Company

1. This business limits the liability of all of its owners at a price of double taxation

2. A creditor’s claim against real property
3. First in line in a bankruptcy
4. This business is at risk upon the death of its owner:
5. Hybrid of corporation and partnership (uses advantages of both)
6. The price of money

7. In general electronic accounting systems show
a) Debits as negative numbers
b) Credits as negative numbers
c) Balance sheet accounts as negative numbers
d) Income statement accounts as negative numbers

8. Which is not a step in the Accounting Cycle:
a) Posting Journal Entries
b) Journalizing a transaction
c) Meeting with Joint Venture Partners
d) Preparing reports

9. The purpose of separating responsibilities is to:
a) Reduce the likeliness of fraud
b) Increase the volume of labor
c) Streamlines processing time
d) Reduce cost of processing

10. A goal of many businesses is to have cash flows that are:
a) Bigger, less risky and more discreet
b) Bigger, sooner and more discreet
c) Bigger, sooner and less risky
d) Sooner, Smoother over time periods and less risky

11. Which of the following does not affect the cost of money?
a) Reserve account
b) Time preferences for consumption
c) Risk
d) Expected inflation

Questions 12 to 13are based on the following case:
A self-amortizing mortgage for $1M. Assume a 10 period, and 6% interest. Assume annual payments of $135,868.
12. What is the balance of what is owed after the second payment? _____________

13. How much interest has been paid in total after the second payment (sum of interest paid in the first and second payments)? _____________

14. What is the IRR, assuming abuilding can be purchased for $250,000 and is expected to net $18,000 for each of the next five years and be sold at the end of the fifth year for $280,000?

15. Which of the following does NOTdescribe the Internal Rate of Return?
a) The discount rate at which Net Present Value = 0
b) The equivalent compound periodic interest rate earned through cash flows on a project assuming equivalent reinvestment over time.
c) The rate at which the future value of invested capital can be determined given assumptions regarding cash flows to be earned in the future.
d) None of the above


How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id support@assignmentconsultancy.com with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id assignmentconsultancy.help@gmail.com and support@assignmentconcultancy.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.


Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.


We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.


Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.



100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services


Questions 16 through18 are based on the following case:
You are about to buy a building with eight apartments. The average rent for each apartment is $1,500 per month. Assume that each year, the rent in each apartment increases $100 per month. The cost to operate the building is $74K per year, and increases each year by 3%. Assume an exit cap rate of 9%. You expect to hold this investment for 5 years.
16. What is the value of the building; assume a discount rate of 9%? ________
17. What is the cap rate at the time you buy the building, assuming you purchase it for the value you state above? ________
18. What would the mortgage be with a loan to value ration of 75%? ________
19. A bank is offering an account with 6% interest as the nominal annual rate. Assume compounding is done monthly, what is the effective annual rate? ____________
20. Under what condition would the effective rate be equal to nominal rate?
a) If the nominal rate is 5.7%
b) If interest is paid quarterly
c) If interest is paid annually
d) If interest is compounded continuously
For Questions 21 to 28 identify what type of account each is by writing next to the account the type (ie Asset, Liability, Income, Expense, Owner’s Equity)(note this is from a Landlord’s perspective):
For Example: Cash _Asset______________
21. Retained Earnings _______________
22. Rent (from tenants) _______________
23. Depreciation Expense _______________
24. Pre-paid Rent(from tenants) _______________

25. Equipment _______________
26. Building _______________
27. Loan _______________
28. Interest Expense _______________

Questions 29 to 31, identify the account to be credited and debited, and if this is a cash transaction or not.
For Example: When an owner funds a business:
Debit _Cash__________ Credit _Owners Equity Cash Transaction? __Yes___
29. When rent is collected from a tenant:
Debit _____________ Credit ____________ Cash Transaction? __________
30. When a loan is paid:
Debit _____________ Credit ____________
Debit _____________ Credit ____________ Cash Transaction? __________
31. When a security deposit is received:
Debit _____________ Credit ____________ Cash Transaction? __________
32. The financial statement that gives a snapshot of a company in a moment of time is called:
a) Income statement
b) Balance Sheet
c) Statement of Cash Flows
d) Sub-ledger

33. Income statement shows a company’s
a) Cash Flow
b) Revenueand expenses over a period of time
c) Cash position at a moment in time
d) Value of a company over a period of time
34. The statement of cash flows ties to:
a) Income statement
b) Cash Account
c) Accounts Receivable
d) Asset side of the balance sheet
35. A tenant’s account would usually be listed on the:
a) Balance Sheet
b) Accounts Receivable Sub-ledger
c) Accounts Payable Sub-ledger
d) Income Statement
36. Operating budgets generally:
a) Cover a period of two to ten years
b) Determine what the balance sheet will look like
c) Consist of Income and Expenses
d) Are shaped by spending on long term projects
37. Zero base budgets:
a) Quantify the inputs for each account
b) Are more expedient to prepare than other types
c) Identify inputs only for major accounts
d) Rely on historical information
38. Which is not typicallyconsidered part of a company’s financial structure:
a) Long Term Debt
b) Preferred stock
c) Common Stock
d) Accounts payable
39. Capital budgeting refers to:
a) Budgeting for operating expenses
b) Budgeting of long term investments in the company
c) Any budgets more than two years in length
d) Any planning performed in Washington DC
40. Internal Rate of Return is determined by:
a) Discounting the cash flows with the Weighted Average Cost of Capital
b) Forcing the NPV to 0
c) Discounting the Future Value back to Time 0
d) Discounting the WACC by the payback period

Product Code :Fin203

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at assignmentconsultancy.help@gmail.com but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.

User Rating
5 based on 1 votes