The Mathematics of Money

562 Chapter 13 Insurance and Risk Management Topic Key Ideas, Formulas, and Techniques Example(s) Deductibles and Coinsurance wi ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Topic Key Ideas, Formulas, and Techniques Example(s) Employee Contributions, p ...

564 Evaluating Projected Cash Flows “Foul cankering rust the hidden treasure frets But gold that’s put to use more gold begets” ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 14.1 The Present Value Method 565 Making Financial Projections Mathematical ca ...

566 Chapter 14 Evaluating Projected Cash Flows The mathematics agrees with our commonsense assessment about which investment wou ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 14.1 The Present Value Method 567 To see why, let’s go back to one of the alte ...

568 Chapter 14 Evaluating Projected Cash Flows bills, and that each machine will last 10 years. Assuming she requires an 8% rate ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 14.1 The Present Value Method 569 The rate for the bowling alley would then be ...

570 Chapter 14 Evaluating Projected Cash Flows A Few Words of Caution The intent of this chapter is to give you a basic understa ...

Copyright © 2008, The McGraw-Hill Companies, Inc. By investing in an improved telecommunications system, a call center believes ...

E. Additional Exercises Suppose Tonia is comparing two different investments, each of which is projected to continue to provide ...

Copyright © 2008, The McGraw-Hill Companies, Inc. required rate of return; two different people, with different rate of return e ...

574 Chapter 14 Evaluating Projected Cash Flows Example 14.2.1 Jeanette owns a pizzeria. Right now, she spends $350 each month on ...

Copyright © 2008, The McGraw-Hill Companies, Inc. The incandescent bulb is costing her (14 kWh/month)($0.12 per kWh)
$1.68 per ...

576 Chapter 14 Evaluating Projected Cash Flows Payback Period Where Payments Vary Formula 14.2.1 and all of the examples above a ...

Copyright © 2008, The McGraw-Hill Companies, Inc. cost $72,500, but the company estimates that it would save $14,575 worth of la ...

578 Chapter 14 Evaluating Projected Cash Flows He currently pays $1,500 per year for his health insurance coverage. His employer ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 579 CHAPTER 14 SUMMARY Topic Key Ideas, Formulas, and Techniques Examples The ...

580 Learning Objectives LO 1 Calculate gross pay based on salary, hourly wages, piece rate, or commission. LO 2 Calculate net pa ...

Copyright © 2008, The McGraw-Hill Companies, Inc. There are four main ways that an employee’s financial compensation can be stru ...