Time Value of Money Student’s Name Dr. Gary P. Tripp FIN 550 2/27/18 Introduction The principle of time value of money states that sum of given money is more valuable to the company based on how soon the money can be received due to the ability of such money to earn interest ("Time Value of Money " 2015). The main idea is the interest rate that the company uses while lending money or leasing its investments. In this case we will be calculating and evaluating the time value of money of Home Depot Inc. the company lease some of its investments including retail locations. Other leasable investments are office space warehouse space equipment and also vehicles. Most of the lease that the company involves in are operating lease though others are capital lease. In this report time value of money of HD will be calculated evaluated and the future principal from Home Depot. Conclusion In conclusion for the market equivalent rate to be reached the interest rate that the company uses should be able to accommodate the borrower and make the borrower comfortable to borrow a certain amount of money and return it within a certain period with an agreed interest rate. The value of money of any company will therefore be determined by its power to operate its capital lease and operating lease. In this case for a Home Depot to project a high value in future its interest should move from 8% to 12% though risk are involved but with proper laid strategies the company will be able to value high than it does now. References Fabozzi F. J. & Ake P. P. (2013). Foundations and applications of the time value of money. Hoboken NJ: Wiley. HD-2.1.2015-10-K. (n.d.). Retrieved February 27 2018 from https://www.sec.gov/Archives/edgar/data/354950/000035495015000008/hd-212015x10xk.htm#sC4BE01EAD7FACC7CF4BE4F74EBE78A35 Time Value of Money. (2015). Finance 161-179. doi:10.1016/b978-0-12-801584-1.00017-2 [...]
Overview: Financial analysis involves examining historical data to gain information about the current and future financial health of a company. Financial analysis can be applied in a wide variety of situations to give business managers the information they need to make critical decisions. The ability to understand financial data is essential for any business manager. For the final project, you will use this case study to prepare a financial analysis report for Home Depot Inc. You will include in your analysis the background calculations and managerial analysis for each of the following topics: time value of money, stock and bond valuation, and capital budgeting. You will also discuss macroeconomic variables that might impact the company’s financial decision making and strategic objectives. These topics will be covered over four milestones to be submitted throughout the course before you submit the final project. Note that while these elements may seem separate and unrelated, together they will present a well-rounded view of the company’s finances with regard to the topics. For this milestone, you will submit a draft of the Time Value of Money section of the final project, along with your supporting explanations. PLease Read Case Study Below to answer questions in rubric I need a 2 Page written report with a separate excel sheet attached. Please see work book page attached below for you to put calculations in spreadsheet thanks.