Key Elements of Transactions:
What is P? -CORRECT ANSWERS- A sum of money at a time chosen at time zero (now)
Referred to as present value or present worth
Key Elements of Transactions:
What is F? -CORRECT ANSWERS- A future aum of money at the end of the analysis period; sometimes
referred as salvage value
Key Elements of Transactions:
What is Vn? -CORRECT ANSWERS- A discrete payment or receipt occurring at the end of some interest
period
Key Elements of Transactions:
What is A? -CORRECT ANSWERS- An end-of-period payment or receipt in a uniform series that continues
for n-periods
Key Elements of Transactions:
What is i? -CORRECT ANSWERS- The interest rate per interest period
Key Elements of Transactions:
What is n? -CORRECT ANSWERS- The total number of interest periods
What is a Cash Flow Diagram? -CORRECT ANSWERS- the financial description (visual) of a project
, Movement of money in and out of project
For a Cash Flow Diagram, what are inflows? -CORRECT ANSWERS- revenues or receipts
For a Cash Flow Diagram, what are the outflows? -CORRECT ANSWERS- expenses or disbursements
What is a Net Cash Flow Diagram? -CORRECT ANSWERS- inflows-outflows
Types of Cash Flow Diagrams -CORRECT ANSWERS- Discrete
Continuous
Discrete Cash Flow Diagram -CORRECT ANSWERS- Movement of cash to or from project at a specific
point in time
Continuous Cash Flow Diagram -CORRECT ANSWERS- Rate of cash moving from or to a project over
some period of time
Cash Flow Diagram End of Period -CORRECT ANSWERS- Convention: any cash flows occurring during the
interest period are summed to a single amount and placed at the end of interest.
Logic: This convention allows financial institutions to make interest calculations easier
Define contingent -CORRECT ANSWERS- dependent
Define Mutually Exclusive -CORRECT ANSWERS- When events have no outcomes in common
Systematic Economic Analysis Technique (SEAT) -CORRECT ANSWERS- 1) Define Problem
2)Development of alternatives
3) Selection of a decision criterion
4) Analysis and comparison of alternatives:
What is P? -CORRECT ANSWERS- A sum of money at a time chosen at time zero (now)
Referred to as present value or present worth
Key Elements of Transactions:
What is F? -CORRECT ANSWERS- A future aum of money at the end of the analysis period; sometimes
referred as salvage value
Key Elements of Transactions:
What is Vn? -CORRECT ANSWERS- A discrete payment or receipt occurring at the end of some interest
period
Key Elements of Transactions:
What is A? -CORRECT ANSWERS- An end-of-period payment or receipt in a uniform series that continues
for n-periods
Key Elements of Transactions:
What is i? -CORRECT ANSWERS- The interest rate per interest period
Key Elements of Transactions:
What is n? -CORRECT ANSWERS- The total number of interest periods
What is a Cash Flow Diagram? -CORRECT ANSWERS- the financial description (visual) of a project
, Movement of money in and out of project
For a Cash Flow Diagram, what are inflows? -CORRECT ANSWERS- revenues or receipts
For a Cash Flow Diagram, what are the outflows? -CORRECT ANSWERS- expenses or disbursements
What is a Net Cash Flow Diagram? -CORRECT ANSWERS- inflows-outflows
Types of Cash Flow Diagrams -CORRECT ANSWERS- Discrete
Continuous
Discrete Cash Flow Diagram -CORRECT ANSWERS- Movement of cash to or from project at a specific
point in time
Continuous Cash Flow Diagram -CORRECT ANSWERS- Rate of cash moving from or to a project over
some period of time
Cash Flow Diagram End of Period -CORRECT ANSWERS- Convention: any cash flows occurring during the
interest period are summed to a single amount and placed at the end of interest.
Logic: This convention allows financial institutions to make interest calculations easier
Define contingent -CORRECT ANSWERS- dependent
Define Mutually Exclusive -CORRECT ANSWERS- When events have no outcomes in common
Systematic Economic Analysis Technique (SEAT) -CORRECT ANSWERS- 1) Define Problem
2)Development of alternatives
3) Selection of a decision criterion
4) Analysis and comparison of alternatives:
