I’m working on a management discussion question and need support to help me study.
PrimaryResponse: Within the Discussion Board area, write 300–500 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
For this Discussion Board, please complete the following:
The time value of money is one of the three major principles of the study and practice of financial management. It is used to do the following:
- Evaluate potential investments
- Determine a rate of return on a project
- Calculate the required payments on a loan or annuity
- Estimate a future value of funds currently invested and the present value of funds to be received at some future date
Using what you learned while watching the above video, let’s say you just won $2 million. You can either choose to take your prize today or wait 1 year and accept $2,002,000 or even wait 2 years and receive $2,003,000. Knowing this information, discuss the following:
- Would you choose to accept the prize right away or wait 1–2 years?
- If accepting the prize right away, what do you plan on doing with the prize in regards to the concept of time value of money?
- Based on when you accept your prize, how can the time value of money models or formulas be used to determine the rate of return for an investment or the time it will take for a current sum to grow to a desired future amount? (Click this resource for help with time value of money models or formulas).
- Discussion Board Rubric
Expectation Points Possible Points Earned Comments Application of Learning Material Content: Post demonstrates understanding of Learning Material content. 20 Application of Course Knowledge: Post contributes unique perspectives or insights gleaned from text/learning resources, or specified by assignment. 20 DB Responses: Responds substantively to two posts. Responses encourage interaction in the Discussion Board and classroom community. 20 Organization: Post presents information logically and is clearly relevant to discussion topic. 8 Professional Language: Posts contain accurate grammar, spelling, and/or punctuation with few or no errors. Any resources should be cited in APA format or style specified in the assignment. 7 Total Points 75 Total Points Earned