Finance Exam Study Guide: Key Concepts & Formulas
Final Exam Study Guide
Chapter 4: Time Value of Money
Present Value (PV)
The current value of future cash flows discounted at the appropriate discount rate, calculated at t = 0 on a timeline.
Formula: PV = FV / (1+r)^t
Discount Rate
The rate of return used to determine the present value of future cash flows. It represents the minimum rate of return required by an investor or business to undertake an investment project or value an investment opportunity.
Future Value (FV)
The amount an investment is worth
Read MoreUnderstanding Forest Dynamics: Growth, Management, and Modeling
1. Forest Types and Functions
Productive Forests
- Wood
- Biomass
- Seed
- Resin
Protective Forests
- Carbon sequestration
- Water regulation
- Oxygen production
- Soil protection
Special Function Forests
- Recreation
- Landscape
- Tourism
- Game
2. Forest Rotation Management Processes
Clear Cut Method
Positives: Simple logistics, ideal for intolerant species regeneration (e.g., Douglas fir).
Negatives: High environmental impact, potential soil erosion, replantation required.
Shelterwood Cut Method
Positives: Remaining trees protect natural
Read MoreMarket Research and Segmentation: A Comprehensive Guide
Scope of Business Research
Understanding Consumer Behavior
Business research plays a crucial role in understanding consumer motivations, behavior, and attitudes towards products, brands, and companies. It helps assess the influence of reference groups and gauge customer satisfaction levels. The research process typically involves the following steps:
- Presentation of a business problem
- Preliminary investigation
- Specification of research objectives
- Obtaining information
- Data processing
- Analysis and interpretation
Understanding Level of Aspiration and Goal Setting Behavior
Level of Aspiration/ Goal Setting Behavior
Name of the Test:
Name of the Tester:
Name of the testee:
Educational Qualification of the testee:
Age of the testee: Gender of the testee:
Mental Status of the testee:
Purpose:
To determine the level of aspiration or goal setting behavior of the testee.
Introduction
Human beings frequently attempt to reach a certain level of excellence which may be called the level of aspiration. According to John Drever, ‘level of aspiration (LoA) is best explained as a frame of
Read MoreUnderstanding Materials Science Concepts
Concept Check 5.2
Question: What point defects are possible for MgO as an impurity in Al2O3? How many Mg2+ ions must be added to form each of these defects?
Answer: For every Mg2+ ion that substitutes for Al3+ in Al2O3, a single positive charge is removed. Thus, in order to maintain charge neutrality, either a positive charge must be added or a negative charge must be removed.
Positive charges are added by forming Al3+ interstitials, and one Al3+ interstitial would be formed for every three Mg2+ ions
Read MoreFinancial Calculations for Investments and Retirement Planning
Find the effective monthly interest rate when the nominal rate is 7% with weekly compounding. [im = ((1 + (0.07/52)^52/12) – 1 = 0.0058464] | You deposit $2000 into an account paying 9% compounded monthly. After one year you withdraw $1000. How much do you have in the account at the end of the 3-year period. [2000(1+(0.09/12))12*3 – 1000(1+(0.09/12))12*2 = 1420.88] | You purchased a saw cutter five years ago for $24,000. You project a $7000 salvage value in two years’ time. Depreciation follows
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