The thread discussion questions are an opportunity to go outside the box to
demonstrate your analytical, integrative, problem- solving and critical
thinking skills using the knowledge acquired in your readings. As a result, it
is very important to pay close attention to the questions and be able to
conduct your discussions in the context of your question.– Please keep this in mind when you complete this week’s assignments for
You must expand your ideas further. Analysis must be
deep and very instructive.
FOLLOWING QUESTIONS. Each question should be answered in at least 150
words. Quality of content and use of course and
outside-of-course resources to support your position or analysis. When
applicable, refer to your workplace using it and your own job as
examples. The answers should not be in the form of essay, just straight to the
point, in full sentences- Work must be original and cite your sources.
Use the text book chapters 3 and 4, found at:
1. If you were trying to evaluate two possible projects
for your company and could only select one of those projects what financial
concepts and/or procedures from this week’s material would you use?
Construct an example of such an evaluation process to explain the financial
concepts and/or procedures and using your illustration indicate which project
you would select.
2. As part of your effort to understand the process of
evaluating various elements of the financial marketplace, your Financial
Manager states that it may become important to take advantage of arbitrage
opportunities. You have been studying this aspect of the financial
marketplace and would like to review your understanding. Describe what
the term “arbitrage” means in the financial context; give an example of
“arbitrage opportunity” and then discuss how the “law of one price” would
impact these opportunities.
1. Suppose you have an uncle who wishes to make a gift of
cash to you which will total $1,000,000. Your uncle has asked you to tell
him if you would rather have $1,000,000 in 5 years from today or if you would
rather have $200,000 at the beginning of each of the next 5 years beginning
with January 1, 2014. You have just completed your study of the time
value of money and want to apply that concept to this decision. How would
you calculate the value of each of possible gift amounts? What will you
tell your uncle is your choice from these two alternatives?