Here is the synopsis of our sample research paper on Time Value of Money, Sources of Finance, Bonds and Share and Influences on Inventory. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4 page paper answers 4 questions, the first defines rime value of money, future value of money and present value of money. The second part considers long term sources of finance for corporation. The third part of the paper discusses the differences between bonds, common shares and preference shares and the last part of the paper looks at the influence o the economy, business expansion plans and investments on inventory levels. The bibliography cites 4 sources.
Page Count:
4 pages (~225 words per page)
File: TS14_TEmoneyq1.rtf
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Unformatted sample text from the term paper:
amount of goods, or have the same buying power in ten years time; it will be worth less as a result of inflation. There will always be some degree of
inflation in a healthy economy as it is required for growth (Howells and Bain, 2003). This is an impact of the time value of money, the value will usually erode
over time. This is why, when looking at investments and projects it is important that the value of money is adjusted to allow for the impact on time. The
impact on time is not only the result of inflation, where money is invested there is the growth as a result of interest and the compounding of interest looking at
this growth will give the future value of money. Compounding is where interest that has already been paid will then attracts further interest payments if the funds are left with
the borrower or intermediary. For example, of there is a deposit of 100 at an interest rate of 10% at the end of the year 10 will be added on
giving a new balance of 110. In the following year 10% will be 10% of the 110, giving 11. The impact of compounding on large amounts over many years can
have a dramatic impact on the capital value of the investment. The use of the present value looks at the net cash
flows generated and then discounts this by a discount figure discounting the amounts to allow for the compound impact of inflation, the cost of capital, or other cost factor, and
then produce a figure that could be sees as equivalent to todays value (Howells and Bain, 2003). 2. Sources of Long Term Financing There are two main sources
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