MGMT 1B Lecture Notes - Lecture 3: Mortgage Note, Promissory Note, Capital Budgeting
Document Summary
Some examples of long term liabilities are notes payable (long term), mortgage note payable, bonds payable. Rate, interest rate, discount rate (which expresses the amount you will get in the future in today"s dollars), and internal rate of return. Payment, deposit, annuity (equal payments over time), and rent. Roth ira: most tax forward; only retirement account that grows tax free but taxes amounts that are deposited by you. Capital budgeting: when a company needs to budget it"s money or capital. Begin mode: 1st payment will begin now/ today ex. ) Roth ira- you can put in an payment today ex. ) leasing a car because the owner would require the first payment before giving you the car ex. ) End mode: 1st payment will begin a month/ quarter/ year/ etc from now ex. ) car payments and condo payments don"t need a payment the first month, you start the second month ex. ) Ordinary annuity because end mode is most common so this is.
