W6D2

This week, you were asked to access a number of videos and websites. These are great resources to help you learn the materials this week. Consider what type of resource you find most helpful in learning new materials (videos, examples, text, etc). Then consider which topic you struggled with the most this week. Complete an online search for a new resource that will help you with that topic. For example, if you learn beset from videos and you struggled with the topic double entry accounting, then complete an online search for “double entry accounting videos”. If you learn best by examples, search for “double entry accounting examples”. Select one of the items you find in your search that you found particularly helpful in learning the topic you struggled with the most and post a summary of the resource and a link to the resource.

INITIAL POST

Cite and summarize the resource.

FOLLOW UP POSTS

As you review what your peers have posted, use your critical thinking skills to respond to their interpretations and conclusions. Seek clarification for points of interest to you.

 

Write at least 300 words 

Post at least two replies to either peers or the instructor  

Write at least 150 words per reply 

Terry Boes

This week I have considered something different.  The NPV calculation is difficult.  In a prior course I created a spreadsheet to figure  it by simply plugging in the numbers.  I tried it on this and to check it I used two NPV calculators from web sites. I got the same answer using both calculators, but my excel sheet provided a different answer.

I typically am at ease with algebraic formulas, but for some reason the NPV gives me fits.  The calculators are a good aid. I feel they are somehow similar to the mortgage calculators you can find on real estate websites. 

It may seem odd but using the calculator has helped me see how the NPV is figured because it broke out the payback portion by year.  By doing so it helped me see how the formula works.  

Below are links to the two NPV calculators I used to check my work.  

https://www.investopedia.com/calculator/netpresentvalue.aspx  

https://www.calculatestuff.com/financial/npv-calculator 

Jacquelyn Regan

This week's reading was a little challenging to follow in the textbook. The definitions are straightforward, but for this week's discussion question it was hard applying these concepts in a problem. For me, I specifically used the example of real estate investing for the discussion question. To help me figure out my budget, I used a few websites for my calculations. The first one I used was the website Investopedia, which has been suggested by a lot of classmates. I used it as tool to help me calculate the Net Present Value, as a result I was able to go through the calculation step-by-step and determine if my example would produce a negative or positive cash flow. Additionally, I looked up how a payback period is used in real-estate. Not only did it explain the benefits of calculating this concept, but also the drawback it has on investments (Mansur, 2019). For example, it does not calculate the inflation rate and this may create a problem in determing the period it will take to generate a profit.  

Mansur, N. (2019, February 24). Real Estate Investment Payback Period: A Beginner's Guide/ Mashvisor. Retrieved from https://www.mashvisor.com/blog/real-estate-investment-payback-period/

Net Present Value Calculator. Retrieved from https://www.investopedia.com/calculator/netpresentvalue.aspx