Suche senden
Hochladen
Chapter 14 effects of inflation
âą
Als PPT, PDF herunterladen
âą
1 gefÀllt mir
âą
822 views
Bich Lien Pham
Folgen
Business
Diashow-Anzeige
Melden
Teilen
Diashow-Anzeige
Melden
Teilen
1 von 13
Jetzt herunterladen
Empfohlen
Chapter 7 ror analysis for a single alternative
Chapter 7 ror analysis for a single alternative
Bich Lien Pham
Â
Chapter 5 present worth analysis
Chapter 5 present worth analysis
Bich Lien Pham
Â
Chapter 11 replacement & retention decisions
Chapter 11 replacement & retention decisions
Bich Lien Pham
Â
Chapter 9 benefit & cost analysis
Chapter 9 benefit & cost analysis
Bich Lien Pham
Â
Chapter 10 making choices & marr
Chapter 10 making choices & marr
Bich Lien Pham
Â
Chapter 13 breakeven analysis
Chapter 13 breakeven analysis
Bich Lien Pham
Â
Chapter 9 benefit & cost analysis
Chapter 9 benefit & cost analysis
Bich Lien Pham
Â
Chapter 6 annual worth analysis
Chapter 6 annual worth analysis
Bich Lien Pham
Â
Empfohlen
Chapter 7 ror analysis for a single alternative
Chapter 7 ror analysis for a single alternative
Bich Lien Pham
Â
Chapter 5 present worth analysis
Chapter 5 present worth analysis
Bich Lien Pham
Â
Chapter 11 replacement & retention decisions
Chapter 11 replacement & retention decisions
Bich Lien Pham
Â
Chapter 9 benefit & cost analysis
Chapter 9 benefit & cost analysis
Bich Lien Pham
Â
Chapter 10 making choices & marr
Chapter 10 making choices & marr
Bich Lien Pham
Â
Chapter 13 breakeven analysis
Chapter 13 breakeven analysis
Bich Lien Pham
Â
Chapter 9 benefit & cost analysis
Chapter 9 benefit & cost analysis
Bich Lien Pham
Â
Chapter 6 annual worth analysis
Chapter 6 annual worth analysis
Bich Lien Pham
Â
Chapter 6 annual worth analysis
Chapter 6 annual worth analysis
Bich Lien Pham
Â
Chapter 17 after-tax economic analysis
Chapter 17 after-tax economic analysis
Bich Lien Pham
Â
Lecture 4 tvm
Lecture 4 tvm
sohag sikder
Â
Chapter 7 ror analysis for a single alternative
Chapter 7 ror analysis for a single alternative
Bich Lien Pham
Â
Chapter 4 nominal & effective interest rates
Chapter 4 nominal & effective interest rates
Bich Lien Pham
Â
Chapter 8 ror analysis for multiple alternatives
Chapter 8 ror analysis for multiple alternatives
Bich Lien Pham
Â
Chapter 11 replacement & retention decisions
Chapter 11 replacement & retention decisions
Bich Lien Pham
Â
Chapter 1 foundations of engineering economy
Chapter 1 foundations of engineering economy
Bich Lien Pham
Â
Chapter 6&7 annual worth analysis & ror lo3b
Chapter 6&7 annual worth analysis & ror lo3b
Abdulaziz AlSuwaidi
Â
Chapter 16
Chapter 16
Robioul Hasan
Â
Chapter 2 factors, effect of time & interest on money
Chapter 2 factors, effect of time & interest on money
Bich Lien Pham
Â
Time value of moey
Time value of moey
Poorna K s
Â
Chap. 7.pptx
Chap. 7.pptx
KhuramMaqsood2
Â
Chapter 3 combining factors
Chapter 3 combining factors
Bich Lien Pham
Â
Product allocation problem
Product allocation problem
W3Edify
Â
Case study questions Engineering Economics
Case study questions Engineering Economics
Abdulaziz AlSuwaidi
Â
Cost of capital
Cost of capital
Viquaco
Â
Internal rate of return
Internal rate of return
N A M COLLEGE KALLIKKANDY
Â
Capital budgeting decisions:
Capital budgeting decisions:
Dr Naim R Kidwai
Â
Chapter 10
Chapter 10
Rashedur Rahman
Â
Chapter 18 sensitivity analysis
Chapter 18 sensitivity analysis
Bich Lien Pham
Â
economy Chapter6 2011_by louy Al hami
economy Chapter6 2011_by louy Al hami
Louy Alhamy
Â
Weitere Àhnliche Inhalte
Was ist angesagt?
Chapter 6 annual worth analysis
Chapter 6 annual worth analysis
Bich Lien Pham
Â
Chapter 17 after-tax economic analysis
Chapter 17 after-tax economic analysis
Bich Lien Pham
Â
Lecture 4 tvm
Lecture 4 tvm
sohag sikder
Â
Chapter 7 ror analysis for a single alternative
Chapter 7 ror analysis for a single alternative
Bich Lien Pham
Â
Chapter 4 nominal & effective interest rates
Chapter 4 nominal & effective interest rates
Bich Lien Pham
Â
Chapter 8 ror analysis for multiple alternatives
Chapter 8 ror analysis for multiple alternatives
Bich Lien Pham
Â
Chapter 11 replacement & retention decisions
Chapter 11 replacement & retention decisions
Bich Lien Pham
Â
Chapter 1 foundations of engineering economy
Chapter 1 foundations of engineering economy
Bich Lien Pham
Â
Chapter 6&7 annual worth analysis & ror lo3b
Chapter 6&7 annual worth analysis & ror lo3b
Abdulaziz AlSuwaidi
Â
Chapter 16
Chapter 16
Robioul Hasan
Â
Chapter 2 factors, effect of time & interest on money
Chapter 2 factors, effect of time & interest on money
Bich Lien Pham
Â
Time value of moey
Time value of moey
Poorna K s
Â
Chap. 7.pptx
Chap. 7.pptx
KhuramMaqsood2
Â
Chapter 3 combining factors
Chapter 3 combining factors
Bich Lien Pham
Â
Product allocation problem
Product allocation problem
W3Edify
Â
Case study questions Engineering Economics
Case study questions Engineering Economics
Abdulaziz AlSuwaidi
Â
Cost of capital
Cost of capital
Viquaco
Â
Internal rate of return
Internal rate of return
N A M COLLEGE KALLIKKANDY
Â
Capital budgeting decisions:
Capital budgeting decisions:
Dr Naim R Kidwai
Â
Chapter 10
Chapter 10
Rashedur Rahman
Â
Was ist angesagt?
(20)
Chapter 6 annual worth analysis
Chapter 6 annual worth analysis
Â
Chapter 17 after-tax economic analysis
Chapter 17 after-tax economic analysis
Â
Lecture 4 tvm
Lecture 4 tvm
Â
Chapter 7 ror analysis for a single alternative
Chapter 7 ror analysis for a single alternative
Â
Chapter 4 nominal & effective interest rates
Chapter 4 nominal & effective interest rates
Â
Chapter 8 ror analysis for multiple alternatives
Chapter 8 ror analysis for multiple alternatives
Â
Chapter 11 replacement & retention decisions
Chapter 11 replacement & retention decisions
Â
Chapter 1 foundations of engineering economy
Chapter 1 foundations of engineering economy
Â
Chapter 6&7 annual worth analysis & ror lo3b
Chapter 6&7 annual worth analysis & ror lo3b
Â
Chapter 16
Chapter 16
Â
Chapter 2 factors, effect of time & interest on money
Chapter 2 factors, effect of time & interest on money
Â
Time value of moey
Time value of moey
Â
Chap. 7.pptx
Chap. 7.pptx
Â
Chapter 3 combining factors
Chapter 3 combining factors
Â
Product allocation problem
Product allocation problem
Â
Case study questions Engineering Economics
Case study questions Engineering Economics
Â
Cost of capital
Cost of capital
Â
Internal rate of return
Internal rate of return
Â
Capital budgeting decisions:
Capital budgeting decisions:
Â
Chapter 10
Chapter 10
Â
Andere mochten auch
Chapter 18 sensitivity analysis
Chapter 18 sensitivity analysis
Bich Lien Pham
Â
economy Chapter6 2011_by louy Al hami
economy Chapter6 2011_by louy Al hami
Louy Alhamy
Â
Chapter 16 depreciation methods
Chapter 16 depreciation methods
Bich Lien Pham
Â
economy Ch4part2_by louy Al hami
economy Ch4part2_by louy Al hami
Louy Alhamy
Â
Chapter 15 cost estimation
Chapter 15 cost estimation
Bich Lien Pham
Â
Pumps
Pumps
Abhishek Choksi
Â
economy Chapter7_by louy Al hami
economy Chapter7_by louy Al hami
Louy Alhamy
Â
economy Chapter2_by louy Al hami
economy Chapter2_by louy Al hami
Louy Alhamy
Â
Wind Power and New Technology
Wind Power and New Technology
Tejveer Choudhary
Â
Workshops for engineers to understand engineering more better.
Workshops for engineers to understand engineering more better.
Pradeep Aswani
Â
Ppt maintenance cb(encrypted)
Ppt maintenance cb(encrypted)
Rohini Haridas
Â
The CECRE: Making renewable energy technologies compatible with the security ...
The CECRE: Making renewable energy technologies compatible with the security ...
IrSOLaV Pomares
Â
economy Ch4 part.1 _by louy Alhami
economy Ch4 part.1 _by louy Alhami
Louy Alhamy
Â
4 interest and equivalence
4 interest and equivalence
Mohsin Siddique
Â
Solar Energy presentation
Solar Energy presentation
Abhishek Choksi
Â
economy Chapter4 part3_by louy al hami
economy Chapter4 part3_by louy al hami
Louy Alhamy
Â
Chapter 19 decision-making under risk
Chapter 19 decision-making under risk
Bich Lien Pham
Â
Rohini haridas wind energy
Rohini haridas wind energy
Rohini Haridas
Â
5. more interest formula (part ii)
5. more interest formula (part ii)
Mohsin Siddique
Â
5 more interest formulas
5 more interest formulas
Mohsin Siddique
Â
Andere mochten auch
(20)
Chapter 18 sensitivity analysis
Chapter 18 sensitivity analysis
Â
economy Chapter6 2011_by louy Al hami
economy Chapter6 2011_by louy Al hami
Â
Chapter 16 depreciation methods
Chapter 16 depreciation methods
Â
economy Ch4part2_by louy Al hami
economy Ch4part2_by louy Al hami
Â
Chapter 15 cost estimation
Chapter 15 cost estimation
Â
Pumps
Pumps
Â
economy Chapter7_by louy Al hami
economy Chapter7_by louy Al hami
Â
economy Chapter2_by louy Al hami
economy Chapter2_by louy Al hami
Â
Wind Power and New Technology
Wind Power and New Technology
Â
Workshops for engineers to understand engineering more better.
Workshops for engineers to understand engineering more better.
Â
Ppt maintenance cb(encrypted)
Ppt maintenance cb(encrypted)
Â
The CECRE: Making renewable energy technologies compatible with the security ...
The CECRE: Making renewable energy technologies compatible with the security ...
Â
economy Ch4 part.1 _by louy Alhami
economy Ch4 part.1 _by louy Alhami
Â
4 interest and equivalence
4 interest and equivalence
Â
Solar Energy presentation
Solar Energy presentation
Â
economy Chapter4 part3_by louy al hami
economy Chapter4 part3_by louy al hami
Â
Chapter 19 decision-making under risk
Chapter 19 decision-making under risk
Â
Rohini haridas wind energy
Rohini haridas wind energy
Â
5. more interest formula (part ii)
5. more interest formula (part ii)
Â
5 more interest formulas
5 more interest formulas
Â
Ăhnlich wie Chapter 14 effects of inflation
Iit kanpur
Iit kanpur
guptakattamuri
Â
Chapter15E2010.pdf
Chapter15E2010.pdf
ParmeshworVetwal1
Â
Effects of Inflation ki ppt h dekh lo bhai
Effects of Inflation ki ppt h dekh lo bhai
MEC09166Rupesh
Â
Chap004.ppt
Chap004.ppt
JEROMEANTONYJmscas20
Â
cash flow.pptx
cash flow.pptx
Ajit Katkar
Â
Chapter 2 introduction to valuation - the time value of money
Chapter 2 introduction to valuation - the time value of money
KEOVEASNA5
Â
Net Present Value First Principles of FinanceAppendix 4.docx
Net Present Value First Principles of FinanceAppendix 4.docx
rosemarybdodson23141
Â
Chap004
Chap004
Yuan Kuei Huang
Â
Chap004
Chap004
guestc78315
Â
Chapter 4
Chapter 4
International Islamic University Chittagong, Batch 28 A9
Â
Ross7e ch04
Ross7e ch04
Alfredo Vasquez
Â
Chap005
Chap005
Morten Andersen
Â
Discounted Cashflows final.ppt..........
Discounted Cashflows final.ppt..........
aliiqbal16900
Â
Chapter_3_Time_Value_of_Money.pdf
Chapter_3_Time_Value_of_Money.pdf
SudipBalLama
Â
Ch5
Ch5
Odko Ts
Â
Iii A Time Value Of Money
Iii A Time Value Of Money
rajeevgupta
Â
Iii A Time Value Of Money
Iii A Time Value Of Money
rajeevgupta
Â
Iii A Time Value Of Money
Iii A Time Value Of Money
rajeevgupta
Â
Understanding the Time Value of Money; Single Payment
Understanding the Time Value of Money; Single Payment
DIANN MOORMAN
Â
Fin415 Week 4 Slides
Fin415 Week 4 Slides
smarkbarnes
Â
Ăhnlich wie Chapter 14 effects of inflation
(20)
Iit kanpur
Iit kanpur
Â
Chapter15E2010.pdf
Chapter15E2010.pdf
Â
Effects of Inflation ki ppt h dekh lo bhai
Effects of Inflation ki ppt h dekh lo bhai
Â
Chap004.ppt
Chap004.ppt
Â
cash flow.pptx
cash flow.pptx
Â
Chapter 2 introduction to valuation - the time value of money
Chapter 2 introduction to valuation - the time value of money
Â
Net Present Value First Principles of FinanceAppendix 4.docx
Net Present Value First Principles of FinanceAppendix 4.docx
Â
Chap004
Chap004
Â
Chap004
Chap004
Â
Chapter 4
Chapter 4
Â
Ross7e ch04
Ross7e ch04
Â
Chap005
Chap005
Â
Discounted Cashflows final.ppt..........
Discounted Cashflows final.ppt..........
Â
Chapter_3_Time_Value_of_Money.pdf
Chapter_3_Time_Value_of_Money.pdf
Â
Ch5
Ch5
Â
Iii A Time Value Of Money
Iii A Time Value Of Money
Â
Iii A Time Value Of Money
Iii A Time Value Of Money
Â
Iii A Time Value Of Money
Iii A Time Value Of Money
Â
Understanding the Time Value of Money; Single Payment
Understanding the Time Value of Money; Single Payment
Â
Fin415 Week 4 Slides
Fin415 Week 4 Slides
Â
Mehr von Bich Lien Pham
Lecture # 13 investment alternatives i
Lecture # 13 investment alternatives i
Bich Lien Pham
Â
Lecture # 12 measures of profitability ii
Lecture # 12 measures of profitability ii
Bich Lien Pham
Â
Lecture # 11 measures of profitability i
Lecture # 11 measures of profitability i
Bich Lien Pham
Â
Lecture # 10 eva and disposal of assets
Lecture # 10 eva and disposal of assets
Bich Lien Pham
Â
Lecture # 9 taxes and eva
Lecture # 9 taxes and eva
Bich Lien Pham
Â
Lecture # 8 depreciation ii
Lecture # 8 depreciation ii
Bich Lien Pham
Â
Lecture # 7 depreciation i
Lecture # 7 depreciation i
Bich Lien Pham
Â
Lecture # 6 cost estimation ii
Lecture # 6 cost estimation ii
Bich Lien Pham
Â
Lecture # 5 cost estimation i
Lecture # 5 cost estimation i
Bich Lien Pham
Â
Lecture # 4 gradients factors and nominal and effective interest rates
Lecture # 4 gradients factors and nominal and effective interest rates
Bich Lien Pham
Â
Lecture # 3 compounding factors effects of inflation
Lecture # 3 compounding factors effects of inflation
Bich Lien Pham
Â
Lecture # 2 time value of money
Lecture # 2 time value of money
Bich Lien Pham
Â
Lecture # 1 foundation
Lecture # 1 foundation
Bich Lien Pham
Â
Chapter 13 breakeven analysis
Chapter 13 breakeven analysis
Bich Lien Pham
Â
Chapter 12 independent projects & budget limitation
Chapter 12 independent projects & budget limitation
Bich Lien Pham
Â
Chapter 10 making choices & marr
Chapter 10 making choices & marr
Bich Lien Pham
Â
Chapter 5 present worth analysis
Chapter 5 present worth analysis
Bich Lien Pham
Â
Chapter 4 nominal & effective interest rates
Chapter 4 nominal & effective interest rates
Bich Lien Pham
Â
Chapter 2 factors, effect of time & interest on money
Chapter 2 factors, effect of time & interest on money
Bich Lien Pham
Â
Mehr von Bich Lien Pham
(19)
Lecture # 13 investment alternatives i
Lecture # 13 investment alternatives i
Â
Lecture # 12 measures of profitability ii
Lecture # 12 measures of profitability ii
Â
Lecture # 11 measures of profitability i
Lecture # 11 measures of profitability i
Â
Lecture # 10 eva and disposal of assets
Lecture # 10 eva and disposal of assets
Â
Lecture # 9 taxes and eva
Lecture # 9 taxes and eva
Â
Lecture # 8 depreciation ii
Lecture # 8 depreciation ii
Â
Lecture # 7 depreciation i
Lecture # 7 depreciation i
Â
Lecture # 6 cost estimation ii
Lecture # 6 cost estimation ii
Â
Lecture # 5 cost estimation i
Lecture # 5 cost estimation i
Â
Lecture # 4 gradients factors and nominal and effective interest rates
Lecture # 4 gradients factors and nominal and effective interest rates
Â
Lecture # 3 compounding factors effects of inflation
Lecture # 3 compounding factors effects of inflation
Â
Lecture # 2 time value of money
Lecture # 2 time value of money
Â
Lecture # 1 foundation
Lecture # 1 foundation
Â
Chapter 13 breakeven analysis
Chapter 13 breakeven analysis
Â
Chapter 12 independent projects & budget limitation
Chapter 12 independent projects & budget limitation
Â
Chapter 10 making choices & marr
Chapter 10 making choices & marr
Â
Chapter 5 present worth analysis
Chapter 5 present worth analysis
Â
Chapter 4 nominal & effective interest rates
Chapter 4 nominal & effective interest rates
Â
Chapter 2 factors, effect of time & interest on money
Chapter 2 factors, effect of time & interest on money
Â
KĂŒrzlich hochgeladen
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
dollysharma2066
Â
Guide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDF
Chandresh Chudasama
Â
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Doge Mining Website
Â
PSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
Anamaria Contreras
Â
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdf
richard876048
Â
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
Data Analytics Company - 47Billion Inc.
Â
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
HajeJanKamps
Â
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
ictsugar
Â
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
Data Analytics Company - 47Billion Inc.
Â
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024
Adnet Communications
Â
International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...
ssuserf63bd7
Â
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
Rbc Rbcua
Â
Kenyaâs Coconut Value Chain by Gatsby Africa
Kenyaâs Coconut Value Chain by Gatsby Africa
ictsugar
Â
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful Business
Seta Wicaksana
Â
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
ictsugar
Â
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
mbikashkanyari
Â
Call Us đČ8800102216đ Call Girls In DLF City Gurgaon
Call Us đČ8800102216đ Call Girls In DLF City Gurgaon
callgirls2057
Â
Digital Transformation in the PLM domain - distrib.pdf
Digital Transformation in the PLM domain - distrib.pdf
Jos Voskuil
Â
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
ashishs7044
Â
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737
Riya Pathan
Â
KĂŒrzlich hochgeladen
(20)
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
Â
Guide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDF
Â
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Â
PSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
Â
Innovation Conference 5th March 2024.pdf
Innovation Conference 5th March 2024.pdf
Â
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
Â
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Â
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Â
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
Â
TriStar Gold Corporate Presentation - April 2024
TriStar Gold Corporate Presentation - April 2024
Â
International Business Environments and Operations 16th Global Edition test b...
International Business Environments and Operations 16th Global Edition test b...
Â
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
Â
Kenyaâs Coconut Value Chain by Gatsby Africa
Kenyaâs Coconut Value Chain by Gatsby Africa
Â
Organizational Structure Running A Successful Business
Organizational Structure Running A Successful Business
Â
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Â
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
Â
Call Us đČ8800102216đ Call Girls In DLF City Gurgaon
Call Us đČ8800102216đ Call Girls In DLF City Gurgaon
Â
Digital Transformation in the PLM domain - distrib.pdf
Digital Transformation in the PLM domain - distrib.pdf
Â
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
Â
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737
Â
Chapter 14 effects of inflation
1.
14-1 Lecture slides to
accompany Engineering Economy 7th edition Leland Blank Anthony Tarquin Chapter 14Chapter 14 Effects ofEffects of InflationInflation © 2012 by McGraw-Hill All Rights Reserved
2.
14-2 LEARNINGLEARNING OUTCOMESOUTCOMES 1. Understand
inflation/deflation 2. Calculate PW of cash flows with inflation 3. Calculate FW with inflation considered 4. Calculate AW with inflation considered © 2012 by McGraw-Hill All Rights Reserved
3.
© 2012 by
McGraw-Hill All Rights Reserved 14-3 Understanding InflationUnderstanding Inflation Inflation: Increase in amount of money needed to purchase same amount of goods or services. Inflation results in a decrease in purchasing power, i.e., one unit of money buys less goods or services Constant-value dollars = future dollars = then-current dollars (1+ f)n (1+ f)n (1) Convert to constant value (CV) dollars, then use real rate i. If f = inflation rate (% per year), the equation is: (2) Leave money amounts as is and use interest rate adjusted for inflation, if if = i + f + (i)(f) Two ways to work problems when considering inflation:
4.
14-4 Example: Constant Value
DollarsExample: Constant Value Dollars Solution: Solve for future dollars How much would be required today to purchase an item that increased in cost by exactly the inflation rate? The cost 30 years ago was $1000 and inflation has consistently averaged 4% per year. © 2012 by McGraw-Hill All Rights Reserved Future dollars = constant value dollars(1 + f)n = 1000(1 + 0.04)30 = $3243 Note: This calculation only accounts for the decreased purchasing power of the currency. It does not take into account the time value of money (to be discussed) Deflation: Opposite of inflation; purchasing power of money is greater in future than at present; however, money, credit, jobs are âtighterâ
5.
Three Different RatesThree
Different Rates 14-5 âș Real or inflation rate i â Rate at which interest is earned when effects of inflation are removed; i represents the real increase in purchasing power âș Market or inflation-adjusted rate if â Rate that takes inflation into account. Commonly stated rate everyday âș Inflation rate f â Rate of change in value of currency Relation between three rates is derived using the relation Market rate is: if = i + f + (i)(f) © 2012 by McGraw-Hill All Rights Reserved
6.
Example: Market vs.
Real RateExample: Market vs. Real Rate 14-6 Money in a medium-risk investment makes a guaranteed 8% per year. Inflation rate has averaged 5.5% per year. What is the real rate of return on the investment? Solution: Solve for the real rate i in relation for if if = i + f + (i)(f) if â f 1 + f 0.08 â 0.055 1 + 0.055 0.024 Investment pays only 2.4% per year in real terms vs. the stated 8% i = = = © 2012 by McGraw-Hill All Rights Reserved
7.
14-7 PW Calculations with
InflationPW Calculations with Inflation © 2012 by McGraw-Hill All Rights Reserved Two ways to account for inflation in PW calculations (2) Express cash flow in future (then-current ) dollars and use inflated interest rate where if = i + f + (i)(f) ( Note: Inflated interest rate is the market interest rate) (1) Convert cash flow into constant-value (CV) dollars and use regular i where: CV = future dollars/(1 + f)n = then-current dollars/(1 + f)n f = inflation rate (Note: Calculations up to now have assumed constant-value dollars)
8.
14-8 Example: PW with
InflationExample: PW with Inflation © 2012 by McGraw-Hill All Rights Reserved A honing machine will have a cost of $25,000 (future cost) six years from now. Find the PW of the machine, if the real interest rate is 10% per year and the inflation rate is 5% per year using (a) constant-value dollars, and (b) future dollars. CV = 25,000 / (1 + 0.05)6 = $18,655 PW = 18,655(P/F,10%,6) = $10,530 Solution: (a Determine constant-value dollars and use i in PW equation (b) Leave as future dollars and use if in PW equation if = 0.10 + 0.05 + (0.10)(0.05) = 15.5% PW = 25,000(P/F,15.5%,6) = $10,530
9.
14-9 FW Calculations with
InflationFW Calculations with Inflation © 2012 by McGraw-Hill All Rights Reserved FW values can have four different interpretations (2) The purchasing power in terms of CV dollars of the future amount ïŒ Use if in FW equation and divide by (1+f)n or use real i where real i = (if â f)/(1 + f) FW = PW(F/P,i,n) (3) The number of future dollars required to have the same purchasing power as a dollar today with no time value of money considered ïŒ Use f instead of i in F/P factor FW = PW(F/P,f,n) (1) The actual amount accumulated ïŒ Use if in FW equation FW = PW(F/P, if, n) (4) The amount required to maintain the purchasing power of the present sum and earn a stated real rate of return ïŒ Use if in FW equation FW = PW(F/P, if, n)
10.
14-10 Example: FW with
InflationExample: FW with Inflation © 2012 by McGraw-Hill All Rights Reserved An engineer invests $15,000 in a savings account that pays interest at a real 8% per year. If the inflation rate is 5% per year, determine (a) the amount of money that will be accumulated in 10 years, (b) the purchasing power of the accumulated amount (in terms of todayâs dollars), (c) the number of future dollars that will have the same purchasing power as the $15,000 today, and (d) the amount to maintain purchasing power and earn a real 8% per year return. (a) The amount accumulated is a function of the market interest rate, if if = 0.08 + 0.05 + (0.08)(0.05) = 13.4% Amount Accumulated = 15,000(F/P,13.4%,10) = $52,750 Solution:
11.
14-11 Example: FW with
Inflation (contâd)Example: FW with Inflation (contâd) © 2012 by McGraw-Hill All Rights Reserved (c) The number of future dollars required to purchase goods that cost $15,000 now is the inflated cost of the goods Number of future dollars = 15,000(F/P,5%,10) = $24,434 (b) To find the purchasing power of the accumulated amount deflate the inflated dollars Purchasing power = 15,000(F/P,13.4%,10) / (1 + 0.05)10 = $32,384 (d) In order to maintain purchasing power and earn a real return, money must grow by the inflation rate and the interest rate, or if = 13.4%, as in part (a) FW = 15,000(F/P,13.4%,10) = $52,750
12.
14-12 Capital Recovery with
InflationCapital Recovery with Inflation © 2012 by McGraw-Hill All Rights Reserved The A/P and A/F factors require the use of if when inflation is considered If a small company invests $150,000 in a new production line machine, how much must it receive each year to recover the investment in 5 years? The real interest rate is 10% and the inflation rate is 4% per year. Solution: Capital recovery (CR) is the AW value if = 0.10 + 0.04 + (0.10)(0.04) = 14.4% CR = AW = 150,000(A/P,14.4%,5) = $44,115 per year
13.
14-13 Summary of Important
PointsSummary of Important Points During deflation, purchasing power of money is greater in future than at present Two ways to account for inflation in economic analyses: (1)Convert all cash flows into constant-value dollars and use i (2)Leave cash flows as inflated dollars and use if Inflation occurs because value of currency has changed © 2012 by McGraw-Hill All Rights Reserved Future worth values can have four different interpretations, requiring different interest rates to find FW Use if in calculations involving A/P or A/F when inflation is considered Inflation reduces purchasing power; one unit buys less goods ort services
Jetzt herunterladen