Def Leppard Tickets Favorite band tickets

Quantity Quantity
Price Price
Total Value Total Value

Ebay Value Ebay Value

What should you do?

Def Leppard Tickets Favorite band tickets
Quantity 4 Quantity 2
Price $30 Price $50
Total Value $ 120.00 Total Value $ 100.00

Ebay Value $ 120.00 Ebay Value $ 100.00

What should you do?

Should accept Def Leppard tickets, sell them on Ebay and use the money to
buy 2 tickets to your favorite band ($120-$100=$20 extra money)
1-Mar
Sell Motorcycle $12,000
less: car repair ($2,000)
Cash remaining $10,000
 Oil Copper
Quantity
Market price/unit
Total Value

Should you take the opportunity?

Would you change your decision?

 Oil Copper
Quantity 200 3000
Market price/unit $90 $3.50
Total Value $ 18,000 $ 10,500

Should you take the opportunity?

Oil + Copper-Cost=$18,000+$10,500-$25,000=$3500

Would you change your decision?

Revenue if released today
Revenue if delayed
Interest rate

Cost of delay
Revenue if released today $2,000,000,000
Revenue if delayed $ 1,600,000,000
Interest rate 8%

Convert 2006 revenue $ 1,481,481,481

Cost of delay of one year (until 2006) $518,518,519

 2016

Cost of Trucks-2016 $100,000,000

Estimate 1-year Inflation factor 8.50%

Cost of Trucks-2017

Funds invested for 1-year $ 100,000,000

Investment Rate 4%
Invested Funds Available in 2017

Discounted value per $ of delay 1.04326923076923

Discounted 2017 cost $104,326,923

less: 2016 Cost ($100,000,000)
Cost of Delay $4,326,923
 2017

$ 108,500,000

$ 104,000,000
Calculate using PV

N
i
PV
pmt
FV

Present Value
Calculate using PV

N 10
i 6%
PV ($8,375.92)
pmt 0
FV 15000

Present Value ($8,375.92)

Calculate the amunt they need to borrow today:

N
i
PV
pmt
FV

Present Value
N 5
i 4%
PV ($1,643,854)
pmt 0
FV $ 2,000,000

Present Value ($1,643,854.21)