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General

The Five-Step Decision-Making Process

From my Cost Accounting textbook:

  1. Identify the problem and uncertainties
  2. Obtain information
  3. Make predictions about the future
  4. Make decisions by choosing among alternatives
  5. Implement the decision, evaluate performance, and learn

straightforward…

Categories
General tech tweet

Mindblogging

Inspired by lots of fresh air

After lots of hours cramped in front of my books, trying to catch up with my studies, I went jogging for a couple of rounds on the Finnenbahn ( a sawdust track ) in the woods. Usually I find running around in circles boring. But today I didn’t mind cos my head is full of unprocessed data.

And while I plodded around the loop, I thought about:

  • Twitter and the Iran election and the video of the dying woman.
  • Thoughtless re-tweeting. I find it scary the way people follow others blindly. With good intentions. But without thinking and researching for themselves. I thought of setting up a slogan such as: Think before you re-tweet.
  • How the initial design of ARPANET, to compensate for network losses, probably explains why people can still find ways and means to send out tweets and photos and videos out of Iran.
  • My Macroeconomics homework about inflation and interest rates.
  • The soothing effect the colour of green leaves has on my mind.

The term mindblogging was coined by fellow blogger Persillie and refers to the writing of virtual blog posts while doing something else such as jogging. By default mindblog posts are always better than their written equivalent.

Congratulations to Mlle. A.! Her blog Handmade 2.0 is featured in the current edition of t3n, a German IT and web magazine.
Way to go!
Next in Brand eins?

I talked to my mom about internet connections in Malawi. She says that prices for mobile internet are getting more affordable. TNM offers USB modems. I need to research this…

Categories
General

Calculating Present Value

Note to myself. Of no public interest whatsoever.

An exciting topic that is virtually knocking me off my feet.

Present value of a future payment is the amount that one must have today to yield that payment at the future date, given the opportunity rate.

One way to calculate this is to use present value tables.

How much is the present value of receiving 4 million US$ in 6 years at an interest rate of 10% paid at the end of the 6 years?

The present value is calculate (amount received at end of period) * (opportunity rate for 10% and 6 years)-
Equals 4 million * 0.564 = 2.265 million US$

If it’s an annuity, i.e. a series of receipts or payments of the same size are received/made at regular intervals, then use present value table for annuities.

For example regular payments of rent 1.4 million US$ at the end of each year for 6 year at an interest rate of 10% have a present value of 1.4 million * 4.355 = 6.097 million $$$.

Alternatively you can use the Excel/OpenOffice function PV:

Syntax:
PV(rate; numperiods; payment; futurevalue; type)