Difference between revisions of "Written midterm - 2012"

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(Created page with "Questions in the midterm will be related to these topics: # Understand various definitions of “interest” and how each is calculated and used: simple, compound, nominal, ...")
 
m (Replaced content with "The midterm will be on 12 October. The material in the midterm and locations will be announced soon.")
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Questions in the midterm will be related to these topics:
The midterm will be on 12 October. The material in the midterm and locations will be announced soon.
 
 
# Understand various definitions of “interest” and how each is calculated and used: simple, compound, nominal, and effective
# Know how to calculate cash flows and exchange them for equivalent values at different times.
# How do taxes affect the above?
# What if all cash flows are negative? (e.g., a public works project)
# Calculate values at any time period from the cash flow data  if the interest rate is different for different periods.
# Be able to work forwards, i.e. escalate values to a future time point, or backwards, i.e. deflate all values to their present value
# Compare various methods of profitability mentioned in class
#* What are the advantages and disadvantages of each method
#* What similarities do the measurements have? 
#* At what point in the planning of a project would each measure be appropriate?
#* What are the measurements trying to represent?
#* What are some simple measures of profitability that one could quickly do to see if a project makes any sense?

# The calculation of DCFRR requires a trial and error solution.  What is the most efficient way to accomplish this?
# What are typical critical values for Payback Time (PT), Return on Investment (ROI), Discounted Cash Flow (DCF), and Minimal Acceptable Rate of Return (MARR)?
# Find one more common measure of profitability (Ex. Equivalent Annual Worth or Annuity).  How is it calculated and how does it compare to other measurements?
# Discuss how the “value of money” is determined.
# What factors affect cash flow?  How are these factors calculated? e.g. inflation, depreciation, taxes
# Set up a cash flow problem and calculate measures of profitability.

Revision as of 22:52, 25 September 2012

The midterm will be on 12 October. The material in the midterm and locations will be announced soon.

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