Time Value of Money
Professor Peter Chung
Time Value of Money
1. 2. 3. Why does money have its time value?: Interest! Why "interest" ? determinants of i Basic concept Simple compounding (Table B) FVn = P0 [FVFi, n] Simple discounting (Table C) PV = FVn [P

Capital Budgeting
Professor Peter Chung
Capital Budgeting
I How to appraise a capital project? (Investment Decision) II. Net incremental Cash Flow III. How to measure Cash Flow? 1. Initial outlay 2. Differential of C/Fs 3. Terminal C/Fs 4. C/F Diagram IV.

BUS 104 - 001
Chapter 1-4
Name:
Edited by Chloe Moon
Decision Analysis and Management Science
Midterm Review
[Chapter 2]
1. Show a separate graph of the constraint lines and the solutions that satisfy each of
the following constraints:
b. B
c. A
a. A
0.

BUS 104 - 001
Chapter 3
Name:
Edited by Chloe Moon
Decision Analysis and Management Science
Practice Problems #3
[Chapter3]
1. Consider the following linear program:
Max 3A + 2B
s.t.
1A + 1B
3A + 1B
1A + 2B
A, B
10
24
16
0
a. Use the graphical solutio