Assignment

KB Requirements

Knowledgebase –. Rather than give you quizzes or tests in this class, I want you to create a knowledgebase. This it is a far more effective way not only for me to measure what you are learning, but for you to absorb the material in a way that you are much more likely to recall it in the future. You will be required to submit your knowledgebase (KB) twice throughout this course that answers all of the questions detailed below.

KB Rules

1. Please use the KB requirements.   They are located in the module assignments as well as in the course resources. Please organize your KB as follows:

a. Please include:

i. The Module Number

ii. The question number

iii. The question

iv. Your answer

2. Each module’s KB should be a minimum of 3 double-spaced pages.  (PLEASE USE NO LARGER THAN A 12 POINT FONT) and margins no larger than 1” wide. Please note that graphics should not be included in the page length.

3. You must incorporate cited resources for each question into your KB (can use the text, the module resources, or qualified internet sources). Feel free to incorporate a quote or cut and paste information into your KB, but you need to make sure that you have properly quoted and cited your sources, and that they are properly vetted sources. If you are quoting a source then they need to have the credentials that qualify them as an expert on the topic. So make sure if you are quoting a post from a forum, blog or vlog; make sure the person who wrote it is considered an expert in the field based on either formal education or a designation achieved.

4. While I encourage you to get additional information from the internet (in properly vetted sources as described above); I need to understand what you know. Therefore, while I encourage you to add direct quote information and/or resources into your knowledgebase from , that cannot be your entire answer. Instead use that as a jumping off point. Your KB needs to reflect what you have learned and/or understand about the material in your own words.

Grading Rubric

	Your grade	Total
Adhered to KB Rules - 10%		0%
Explanation of the concepts - 40% of total grade		0%
Conveying your understanding of how to use the concepts - 50% of total grade		0%
		0%

10% of your grade will come from your adherence to the KB rules detailed above.

40% of your grade will come from your explanation of the concept covered in the question.  So if I were to ask you a question about the difference between stated rate and effective rate then the first part of your answer should be a detailed explanation of the difference between the two.

50% of your grade will come from your conveying your understanding of how to either use the concept, or manage for the concept.  In other words I would like to know when, where, why and/or how you would use it. 

Example:  So if the question was about the difference between a stated rate and effective rate then I would expect you to discuss how time and how the funds are being used will be a factor.  For instance, if you were deciding where to put a businesses' working capital, then accessibility would be more important and the difference between the effective rate and the stated rate (and how often the funds were compounded) would not be the most important consideration; however, if these were funds that were being set aside for the long term (to pay off a bond issue or for the replacement of some equipment), then how often funds are compounded is going to be important.

 Example:  If you were asked to discuss vertical analysis.  In that case, I would expect you to explain why a business would use vertical analysis, when they would use it (in what circumstances); why you use vertical analysis as opposed to ratio analysis or horizontal analysis, and of course how you do it.

Please address the following:

Module 7:

1. Explain what calculating the time value of money does.

2. What is the difference between effective rate and stated rate?

3. Explain the relationship between inflation and the time value of money.

4. Please write out the steps in excel to calculate present value and future value and explain why we use them?

Module 8:

1. Give two examples of using annuities.

2. Explain the difference between calculating simple interest and calculating the interest for a mortgage.

3. What impact does time period have on an annuity?

4. What are the things that can be done to increase a FICO score.

Module 9:

1. Why is it important to consider the cost of long term capital expenditures when they reside on the balance sheet?

2. Describe the steps in creating a capital budget and how they affect your management decisions.

3. Explain the various situations where each one of the six techniques for capital budgeting would be the best one to utilize. (Note you need to come up with a situation for each one of the six techniques).

Module 10:

1. What can you do to manage risk?

2. What is a financial plan?

3. Discuss the factors that can have a negative effect on a retirement plan.

4. Can these factors be managed?