150 words agree or disagree to each questions
For the purpose of this forum, I chose to side with position two that it is important to understand the calculations of FV and PV of monetary sums. I opted to choose position two because just as we have read about the fundamental principles of finance the PV and FV are the foundation to any business small or large. It is not enough to just understand the technological tools and do data entry to run any business. It is vital for a business to understand what it’s purchasing power is and that is affected by inflation constantly (Irons, 2020). This allows businesses to make more decisions that are financially sound for employee’s, stakeholders, shareholders, etc. This is why businesses managers need to compare projects and decide which ones to pursue, there are generally three options available: internal rate of return, payback method, and net present value (Wessel & Gallo, 2017). In turn this allows for the use of technological tools that help allow for these calculations at a higher speed to give a competitive edge in the fast pace markets. No one is making these calculations by hand in this day in age and that why it makes sense to use computer-based programming. Despite this as stated early just making simple data entry and not understanding the long term affects five to ten years down the road on investment that were made would be potentially catastrophic to companies. This is why businesses managers need to compare projects and decide which ones to pursue, there are generally three options available: internal rate of return, payback method, and net present value (Wessel & Gallo, 2017).
Irons, R. (2020). The fundamental principles of finance. New York, NY: Routledge.
Wessel, M., & Gallo, A. (2017, December 06). A refresher on net present value. Retrieved February 08, 2021, from https://hbr.org/2014/11/a-refresher-on-net-present-value
I feel that both positions have great value and both need to be taught and understood by all students taking this course. It is necessary for any financial institutions or company to understand how to use the technological tools to perform calculations. It is critical for students of finance to have knowledge and understanding on how to perform calculations for future values (FV) and present value (PV) of monetary sums. Having the most up to date technology will help the user reduce the time needed for calculation and give the ability to have additional time to perform other types of activity. With that being said, since my profession is a teacher, I would have to select position 2. As a teacher I feel students must show their work on all problems on their assignments. It is always important to understand the fundamentals of any mathematical equation when considering using technology for one simple fact, user error happens. Sangwin and Ramsden suggest that syntax errors are the most common form of error when using a calculator (2007). If the user does not understand how to do the concept by hand, it will be difficult to spot miscalculations or possible user error
Lastly, it is my opinion that a student should first learn the financial formulas and calculations such as how to calculate FV and PV of monetary sums. Once this is mastered, they would then learn how to use tools to perform financial calculations.
One must remember that technology is merely a tool. A tool without the proper operator, is useless.
Sangwin, C. J., & Ramsden, P. (2007). Linear syntax for communicating elementary mathematics. Journal of Symbolic Computation, 42(9), 920-934. doi:10.1016/j.jsc.2007.07.002