ALLOCATING RESOURCES OVER TIME参考.ppt

* * 人民币符号：RMB￥ or CNY * * * * * * * * * INFLATION AND SAVINGS PLANS We have seen how to compute the number of years it takes to save for something using both real and nominal methods Another important question is How much must I save each year in order to achieve a savings goal? We will reuse the boat problem, but with the assumption that the boater is willing to wait 8-years, but wishes to minimize annual (inflation adjusted) payments * 4.11 TAXES AND INVESTMENT DECISIONS Rule: Invest so as to maximize your after-tax rate of return This is not at all the same thing as Minimize the tax you pay (False) * INVESTING IN TAX-EXEMPT BONDS In the USA, municipal bonds are exempt from income taxes Under what circumstances would you be indifferent to investing in an identical bond that pays tax if your marginal rate of tax is (say) 20%? * * * * * * * * * * * * * * * * * * * * * * * * * * * 补充：EBITDA * Recall that only the interest portion is tax-deductible, so the tax shelter decays * * THE FREQUENCY OF COMPOUNDING Many lenders and borrowers do not have a clear understanding of APRs, but institutional lenders and borrowers do Institutions are therefore able to extract a few basis points from consumers, but why bother? * THE FREQUENCY OF COMPOUNDING Financial intermediaries profit from differences in the lending and borrowing rates. Overheads, bad loans and competition results in a narrow margin. Small rate gains therefore result in a large increases in institutional profits In the long term, ill-informed consumers lose because of compounding * 4.3 PRESENT VALUE AND DISCOUNTING Q: Sometimes we want to know how much we have to invest or deposit to have a certain amount value of FV Discount * PRESENT VALUE OF A LUMP SUM * Discounted cash flow analysis Present value factor EXAMPLE: PRESENT VALUE OF A LUMP SUM You have been offered $40,000 for your printing business, payable in 2 years. Given the risk, you require a return of 8%. What is the present value of the offe