CHAPTER 5
DISCOUNTED CASH FLOW VALUATION
CHAPTER 5 QUIZ
CHAPTER ORGANIZATION
5.1
Future and Present Values of Multiple Cash Flows
Future Value with Multiple Cash Flows Use a timeline to illustrate the time period in which cash flows
occur. In almost all
Note
The following memorization cards are a compilation of
various topics you will need to know for the CFP Exam.
The cards cover the calculator, economics, and
investment topics.
You will want to use this format to add topics you need
to memorize for the
Assignment
Question 1.
A. [25 points] Consider the following predation game involving an incumbent and a potential entrant.
Payoffs are written with the potential entrants profits listed first and the incumbents listed second. The
profit numbers represent
HW4 Solution Key
UCDavis, 160a, SSII, 2007
Prof. Farshid Mojaver
Problem set 1: Economies of Scale and Imperfect Competition
Problem 1
There are some shops in Japan that sell Japanese goods imported from the United States
at a discount over the prices cha
Question 1.
A. [25 points] Consider the following predation game involving an incumbent and a potential entrant.
Payoffs are written with the potential entrants profits listed first and the incumbents listed second. The
profit numbers represent discounted
1) Suppose the market for semiconductors in the U.S. is characterized by: Qd = 200 40P
[Demand] Qs = 40+ 40P [Supply] The market for semiconductors in the rest of the world is
characterized by: Qd = 160 40P [Demand] Qs = 80 + 40P [Supply] Suppose the U.S.
(Solving for PMT in an annuity)
To pay for your childs education, you wish to have accumulated $15,000 at the end of 15
years. To do this, you plan to deposit an equal amount into the bank at the end of each
year. If the bank is willing to pay 6 percent c
Present Value Theory, Bond Pricing, and Dividend Discount:
1) Value of a dollar we must address compounding (Time Value)
0
1
1
1.05
2
3
1.052
1.053
T
1.05T
If youre going to receive $1 a year from now, whats it worth today?
How about $1 two years from now
Chapter 9
Discussion Questions
9-1.
How is the future value (Appendix A) related to the present value of a single
sum (Appendix B)?
The future value represents the expected worth of a single amount, whereas the
present value represents the current worth.
Smoking is one of the detrimental factors of bad health and its contribution for infertility
is huge. Smoking has been linked to an increased risk for many cancers, heart disease,
emphysema, and a number of other health problems which also includes reprod