Time Value of Money Discussion Post
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Language English Pages 5-10 pages Description/Paper Instructions
Subject Finance Topic Time Value of Money Type Discussion Board Post Level College Style APA Sources 2 Language English(U.S.) Description Please be sure to answer the discussion board post and to use paragraphs and to give thorough answers (see the examples that I posted that were submitted by my classmates and respond to each classmate) Please provide 2 references. No Plagiarism. I need the writer to post a discussion answer below (one of my classmates is 160 words) and the the writer must post a comment/ response the the 2 classmates posts.Discussion Question:
Examine the concept of the time value of money in relation to corporate managers. Propose two (2) methods in which time value of money can help corporate managers in general.Classmate 1
Time value of money is the relationship between time and money – a dollar received today is worth more than a dollar promised in the future. According to Higgins, Koski, & Mitton (2019), time value of money exists for three reasons “inflation reduces the purchasing power of future dollars, uncertainty surrounding the receipt of a dollar, lastly, the important notion of opportunity cost.” Net present value, or NPV and internal rate of return, or IRR are the two most popular methods. NPV and IRR help can management with capital budgeting. Because of purchases such as equipment, software, or acquisition can take a substantial amount time before seeing any cash flow, NVP and IRR method can help in the decision-making process. NPV considers time value of money and provides management with concrete numbers that allows them to compare against present value of the return (Merritt, 2020). IRR allows management compare and rank projects based on their projected yield. IRR is used to analyze investments for private equity and venture capital, these investments require multiple cash investments over the life of the business and cash flow at the end through a sale of the business (CFI, 2020).Higgins, R. C., Koski, J. L., & Mitton, T. (2019). Analysis for financial management (12thFinancial Management (12th ed.). New York, NY: McGraw-Hill Education.
Merritt. C. (2020). Why is time value of money so important in capital budgeting decisions? Chron. Retrieved from https://smallbusiness.chron.com/time-value-money-important-capital-budgeting-decisions-61898.html
CFI. (2020). Internal Rate of Return (IRR). An Analyst’s Gide to IRR. Retrieved from https://corporatefinanceinstitute.com/resources/knowledge/finance/internal-rate-return-irr/
Classmate 2
Hello Class!
The time value of money is a concept that money now is worth more than the identical sum in the future because of its potential earning capacity. This financial principle holds that if money can earn interest, any amount of money is worth more the sooner it is obtained.
Corporate managers consider the time value of money in making decisions about investing in new product development, buying new business equipment or facilities, and determining credit terms for the sale of their services and products. One way time value of money could help corporate managers is the potential for revenue from an investment that it can then reinvest. Additionally, time value can benefit managers when considering the company’s debt. If the company has costly debt, it is beneficial to get money in hand as quickly as possible and consider investments accordingly.
Source: https://www.investopedia.com/terms/t/timevalueofmoney.asp
https://corporatefinanceinstitute.com/resources/knowledge/valuation/time-value-of-money/
Spacing Double Pages 5
RUBRIC
Quality of Response No Response Poor/Unsatisfactory Satisfactory Good Excellent Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. The can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
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