Essays Tagged: "Discount rate"

Web Services Return on Investment: Working out what you're getting out of Web Services In this article, the authors have tried to keep a realistic, pragmatic, and balanced approach

through which companies can conduct ROI analysis of a new technology such as Web Services. They are discounted cash flow analysis and payback period analysis. Below are some of the fundamental concept ... as well as the indirect measures valued by management should be considered when calculating the ROI.Discount Rate or Weighted Average Cost of Capital (WACC)The discount rate, also known as the weighte ...

(6 pages) 257 0 5.0 Jan/2003

Subjects: Businesss Research Papers > Management

Important for stakeholder

e added today by commencing an investment.B1:Original Net Present Value with Real Cash Flow at Real Discount RateIt is vital to be clear about what to be included to calculate NPV. Only the incrementa ... w in each year over the 12-year project life. The NPV is then 7,828,720 with real cash flow at real discount rate. In other words, this project will create 7,828,720 if SREC takes this project. (Refer ...

(4 pages) 165 0 3.0 Mar/2004

Subjects: Businesss Research Papers > Accounting

Discount Rates, helpful in determining future net worth.

pany's net worth. These same indicators are used if a company's future earning is ever in question. Discount rates are used to fill the void of such future earnings that may have been lost by circumst ... d of such future earnings that may have been lost by circumstances out of the company's control.The Discount rate reflects the rate of the payee rather than the one being paid. The strength of the com ...

(2 pages) 87 0 3.7 May/2004

Subjects: Businesss Research Papers > Case Studies

Effects of US Monetary Policy- Provides overview of American monetary policy at home and abroad by siteing specifice examples and providing some personal opinion.

York. The Board sets reserve requirements and shares the responsibility with the Reserve Banks for discount rate policy. The FOMC is the policy arm of the Fed and the tasks of the Federal Reserve are ...

(5 pages) 114 0 5.0 Apr/2005

Subjects: Social Science Essays > Economics > Economic History

Monetary Policy Paper.

le prices.The Federal Reserve's three main parts of monetary policy are open market operations, the discount rate and reserve requirements. Open market operations involve the buying and selling of U. ... irements. Open market operations involve the buying and selling of U. S. government securities. The discount rate is the interest rate charged by Federal Reserve Banks to depository institutions on sh ...

(3 pages) 160 0 5.0 Sep/2005

Subjects: Businesss Research Papers

Basic Economics: The Federal Reserve Board; Monetary and Open Market Policies

you spend or save your money. The first option the Fed has is the interest rates (also known as the discount rate) in which they lend the money to banks. With an increase of the interest rates the inc ...

(4 pages) 79 0 0.0 Mar/2006

Subjects: Social Science Essays > Economics

Fonderia di Torino S.P.A. Case Study

-Maker machine. What is the initial outlay? What are the benefits over time? What is an appropriate discount rate? Does the net present value(NPV) warrant the investment in the machine?Initial Case Ou ... 130,682)-130,000}*0.43]= 196,704Net outlay for new machine -1,010,000+196,704 = -813,296Appropriate discount rateRs = Rf+B(Rm-Rf)=5.3%+1.25*6%=12.8%Rb = 6.8%*(1-0.43)= 3.88%R(wacc) = (33%)*(3.88%)+(67 ...

(4 pages) 662 2 2.5 May/2006

Subjects: Businesss Research Papers > Case Studies

Monetary and Fiscal Policy

ls to manipulate the money supply. They are the reserve requirement, openmarket operations, and the discount rate.The most powerful tool available is the reserve requirement. The reserve requirement i ... they can borrow from Federal Reserve Banks. Just like other loans, there is an interest rate, or a discount rate, the third tool of the monetary policy. If the discount rate is high, then fewer banks ...

(3 pages) 308 0 4.5 Sep/2006

Subjects: Social Science Essays > Economics

Financial Management

= number of yearsFormula:PV = FV/(1 + r) nThe present value of $500 due in 10 years at a 6 percent discount rate.PV = $ 500 / (1 + 0.06) 10c) The present value of $500 due in 10 years at a 6 perce ... cent discount rate.C = $ 279.20d) The present value of $1,552.90 due in 10 years at a 12 percent discount rate and at a 6 percent rate.At 6 % = $ 867.13At 12 % = $ 499.99Definition of Present va ...

(4 pages) 90 0 3.0 Apr/2007

Subjects: Businesss Research Papers > Accounting