经济篇

- Jessica is in the market for a new car. She has narrowed her search

down to 2 models. Model A costs $23,000 and Model B costs $17,000.

With both cars she plans to pay cash and own them for 3 years before

trading in for a new car. Her research indicates that the trade in

value for Model A after 3 years is 52% of the initial purchase price,

while the trade in value for Model B is 37%. Jessica has no emotional

attachment to either model and wants to make a strictly financial

decision. The interest rate is 7%. For simplicity assume that

operating and maintenance costs for the models are identical every

year. Which model is the better decision and how much “cheaper” is it

than the alternative?A. Model A; $1,371.59

B. Model A; $6,000.00

C. Model B; $1,371.59

D. Model B; $6,000.00

accumulated deficit 累计赤字

active trade balance 贸易顺差

Comparison between A&B

adverse trade balance 贸易逆差

A消耗的比B 多，所以选择Model B，选项C

aid 援助

- College tuition has been rising at a rate of 3% per year. Currently

the average tuition of a state college is $8,700 per year. Andrea’s

son Trevor will begin college in 14 years. Andrea’s portfolio is

making 7% annually. How much does Andrea need to have set aside

today/now to pay for 4 years of college for Trevor? (Note: Tuition

will continue to change annually and Andrea’s portfolio balance will

continue to accrue interest while Trevor is in school. Also, tuition

is due at the beginning of each year.)A. $19,038.11

B. $18,035.07

C. $34,800.00

D. $19,297.52

allocation of funds 资金分配

allotment 拨款

Calculating Tuition Fee for Each Year Study

allowance/grant/subsidy 补贴，补助金，津贴

选D

amortization 摊销，摊还，分期偿付

- You have been living in the house you bought 6 years ago for

$250,000. At that time, you took out a loan for 80% of the house at a

fixed rate 25-year loan at an annual stated rate of 7.0%. You have

just paid off the 72th monthly payment. Interest rates have meanwhile

dropped steadily to 6.5% per year, and you think it is finally time to

refinance the remaining balance over the residual loan life. But there

is a catch. The fee to refinance your loan is $5,500. Should you

refinance the remaining balance? How much would you save/lose if you

decided to refinance?A. No, lose $1,326.77

B. Yes, gain $6,826.77

C. No, lose $6,826.77

D. Yes, gain $1,326.77

annuity 年金

article 物品，商品

Solutions step by step

assigned 过户

So gain 1326.77

autarchy 闭关自守

- You are interested in a new Ford Taurus. After visiting your Ford

dealer, doing your research on the best leases available, you have

three options. (i) Purchase the car for cash and receive a $1,500 cash

rebate from Dealer A. The price of the car is $15,000. (ii) Lease the

car from Dealer B. Under this option, you pay the dealer $450 now and

$175 a month for each of the next 36 months (the first $175 payment

occurs 1 month from today). After 36 months you may buy the car for

$8,700. (iii) Purchase the car from Dealer C who will lend you the

entire purchase price of the car for a zero interest 36-month loan

with monthly payments. The car price is $15,000. Suppose the market

interest rate is 4%. What is the net cost today of the cheapest

option? (Enter just the number in dollars without the $ sign or a

comma and round off decimals to the closest integer, i.e., rounding

$30.49 down to $30 and rounding $30.50 up to $31.)

available capital 可用资产

对比三个，最便宜的是Dealer A，是13500

average income 平均收入

balance of trade 交易平衡

Comparison between 3 dealer

bank 银行

- Diane has just turned 18 and also completed high school. She is

wondering about the value of a college education. She is pretty good

with numbers, and driven by financial considerations only, so she sits

down to calculate whether it is worth the large sum of money involved.

She knows that her first year tuition will be $14,000, due at the

beginning of the year (that is, right away). Based on historical

trends she estimates that tuition will rise at 5% per year for the 4

years she is in school. She also estimates that her living expense

above and beyond tuition will be $8,500 per year (assume this extra

expense occurs at the end of each year only when she is in college)

for the first year and will increase $500 each year thereafter to keep

up with inflation. She does not plan to work at all while attending

school. Were she to forgo college she would be able to make $27,000

per year out of high school and expects that to grow 3% annually. With

the college degree, she estimates that she will earn $42,000 per year

out of college, again with annual 3% increases in salary. Either way,

she plans to work until the day she turns 63 (she begins college right

away). The interest/discount rate is 8%. What is the NPV of her

college education? (Note: All cash flows except tuition payments occur

at the end of the year.)A. $444,820.23

B. -$27,227.82

C. -$31,206.31

D. -$29,762.00

banknote/note/bill 钞票，纸币

bear 卖空者，空头

Calculating by steps

bearer cheque无记名支票

The conclusion is, its a waste to go to school hahahaha. Choose C.

bond债券

- Rafael owned an apartment building that burned down. The empty lot

is worth $50,000 and Rafael has received $290,000 from the insurance

company. Rafael plans to build another apartment building that will

cost $415,000. His real estate adviser estimates that the expected

value of the finished building on the real estate market will be

$530,000 next year. The discount/interest rate is 7%. What are the NPV

and IRR of this decision?A. -$80,327; -27.71%

B. $30,327; 13.98%

C. -$30,327; -13.98%

D. $80,327; 27.71%

borrower 借方，借款人

Choose B

borrowing 借款

break 暴跌

- Roxanne invested $230,000 in a new business 9 years ago. The

business was expected to bring in $2,000 each month for the next 18

years (in excess of all costs). The annual cost of capital (or

interest rate) for this type of business was 9% with monthly

compounding. What is the value of the business today? (Enter just the

number in dollars without the $ sign or a comma and round off decimals

to the closest integer, i.e., rounding $30.49 down to $30 and rounding

$30.50 up to $31.)

broker 经济人

PV(following 9 years)=PV(0.09/12, 108, 2000)=147,678.76

bull 买空者，多头

cost=230000

business recession 经济衰退

NPV=-82321

business slump 生意萧条

why only 9 years? Coz the previous 9 years revenue has been collected

while it was not related to the “current” business.

deficiency 亏损

why 230000 still the same, without any interest rate increasing? coz

this money has been invested and cannot increase value in the future

deflation 通货紧缩

- Fresh off the excitement of the 2012 London Olympic Games, you

decide that you want your firm to take advantage of the profits to be

made for the 2016 games in Rio de Jeneiro. To do so you plan to open a

factory in Brazil. After examining the idea, your CFO projects

revenues next year (2013) to be $16 million and costs to be $7

million. Both of these are expected to grow at a rate of 21.0% per

year as the excitement for the games builds. Your firm faces a 35% tax

rate, a 10.0% discount rate and you can depreciate your new investment

using the straight line method over the four years leading up to the

games, at which point the value of the venture moving forward will be

$5 million. This $5 million is the after-tax terminal value that is in

year 4 (that is, 2016) dollars and is the PV of all cash flows year 5

and beyond. The capital expenditure of this project is $11 million.

What is the NPV of the project? Assume that you have no significant

working capital costs. (You are strongly encouraged to use a

spreadsheet.) (Enter just the number in dollars without the $ sign or

a comma and round off decimals to the closest integer, i.e., rounding

$30.49 down to $30 and rounding $30.50 up to $31.)

demand and supply balance 供求平衡

depreciation 减价，贬值

calculation steps for Q8

devaluation (货币)贬值

swith million dollars to dollars, the answer would be 20,147,745

developing 发展中的

- Walmart is considering opening a small experimental store in New

York City. A store is expected to have a long economic life, but the

valuation horizon is 19 years. The store in New York is likely to

generate revenues of $36M in the first year and then it grows at 5.0%.

But the costs of running the business are high because the margins on

all the products sold are low. (It is a volume business!) The cost of

goods sold is $12M in year 1 and it is expected to grow at 3.5% per

year thereafter. Selling and administration costs are likely to be

$1.2M every year as it is a small store. The tax rate is 35%. Walmart

is so good at managing its stores that working capital increases can

be assumed to be negligible. But since New York City is an expensive

place, Walmart will have to invest $225M in purchasing a building

(with land) even though it is a much smaller property than a usual

Walmart store. The good news is that this outlay can be straight line

depreciated over 19 years. Also, Walmart has estimated that the

after-tax terminal value in year 19 dollars is $75M. This value is the

present value of all cash flows in year 20 and beyond. What is the NPV

of opening this new store if the appropriate discount rate is 4.0%?

(Again, all cash flows except initial investments happen at the end of

the year. You are strongly encouraged to use a spreadsheet.) (Enter

just the number in dollars without the $ sign or a comma and round off

decimals to the closest integer, i.e., rounding $30.49 down to $30 and

rounding $30.50 up to $31.)

discount 贴现，折扣

This time I did this question wrong again, like Assignment 7 Question 9,

while since I cannot open the page to try my further analysis any more,

I would type in my answer here but won’t answer is not confirmed

correct.

dividend 股息，红利

- Springfield Ironworks (SI) recently had their furnace break down

and they need to quickly purchase a new one to minimize the disruption

in their production. They can either choose a high quality furnace (H)

that costs $100,000 with $2,500 of annual maintenance costs for the

6-year life of the furnace, or a low quality furnace (L) that costs

$55,000 with $6,500 in annual maintenance costs for the 3-year life of

the furnace. Which furnace should SI choose? What is the annualized

cost of their choice? Assume a discount rate of 4.5%, and ignore all

taxes.A. L, $72,868

B. H, $21,888

C. H, $112,895

D. L, $26,508

doldrums 经济停滞

domestic currency/local currency 本国货币

Calculation Steps for Q10

drawing 提款，提存

所以选B

dull 盘整

dull market 萧条的市场

duty 税

earnings 利润，收益

ease 松弛

economic policy 经济政策

economic recession 经济衰退

economic recovery 经济复原

economic sanction 财经制裁

economic situation 经济形势

economic stability 经济稳定

economic takeoff 经济起飞

economic trend 经济趋势

economist 经济学家

exchange rate 汇率，兑换率

expenditure/outgoings 开支，支出

fiscal year 财政年度

fixed assets 固定资产

fixed costs 固定成本

floating debt 流动债务

floating exchange rate 浮动汇率

foreign exchange 外汇

income tax 所得税

income 收入，收益

increase in value/appreciation 增值，升值

infrastructure 基本建设

initial capital 创办资本

input 投入

insurance 保险

interest 利息

investment trust 投资信托

investment 投资，资产

investor 投资人

issue 发行股票

land tax 地租，地价税

lender 债权人

liberal economy 自由经济

long term loan 长期贷款

rate of growth 增长

rate of interest 利率

raw material 原料

raw product 初级产品

ready money 现钱

real estate 不动产，房地产

redemption 偿还

rediscount 再贴现

reserve 预备金，储备金

retailer 零售商

revaluation 重估价

runaway inflation 无法控制的通货膨胀

rural economics 农村经济

saving 储装，存款

scarcity 短缺

securities business 证券市场

securities 有价证券

share 股份，股票

shareholder/stockholder 股东

short term credit 短期信贷

short term loan 短期贷款

supply 供给，补给

switch trade 转手交易

tax exemption 免税

taxation 征税，纳税

taxation system 税制

tax-free 免税的

taxpayer 纳税人

transfer 转让，转账，过户

transport costs 运输费用

underdeveloped 不发达的

value added tax 增值税

自然篇

active volcano 活火山

agricultural products/farm products 农产品

agricultural/commodities market 农业市场

agronomist 农学家

animal husbandry/animal breeding 畜牧业

archipelago 群岛

atlas 地图集

basin 流域

bay 海湾

canal 运河

cape 海角

cattle farm 奶牛场

clear 采伐

climate 气候

coast 海岸

collective farm 集体农场

continent 大陆

cooperative farm 合作农场

cosmography 宇宙志

cosmology 宇宙论

country/countryside 农村

cove 湾

cultivate/farm 耕作

current/watercourse 水流

delta 三角洲

desert 沙漠

dry soil 旱田

dune 沙丘

earth/globe 地壳

Earth 地球，大地

equator 赤道

ethnography 民族志

fallow 休耕地

farm 农场

farming/husbandry 农业

fertile soil 沃土

foodstuffs 食品

fruit grower 果农

geology 地理学

geopolitics 地理政治论

glacial zone 寒带

globe 地球仪

grassland 草地

gulf 海湾

height above sea level 海拔高度

high plateau 高原

high seas/open sea 公海

horticulture 园艺

ice floe 冰川

iceberg 冰山

inlet 小湾

insecticide 杀虫剂

irrigable land 水浇地

island 岛

key 暗礁

land/soil 土壤

latitude 纬度

lava 熔岩

lean soil/poor soil 贫瘠土壤

livestock 牲畜

locust 蝗虫

longitude 经度

low water 最低水位

map/plan/chart 平面图

market gardening 商品蔬菜种植业

marsh/swamp 沼泽

meadow 草甸

mechanization of farming 农业机械化

mechanized farming 机械化耕作

meridian 子午线，经线

meteorology 气象学

mouth河口

North pole 北极

northern 北的

oasis 绿洲

ocean 大洋

oceanography 海洋学

parallel 纬线

parasite 寄生虫

pasture land 牧场

peninsula 半岛

pest 农业害虫

pesticide 农药

physical geography 自然地理

plain 平原

plot/parcel/lot 地块

polar circle 极圈

pond 池塘

port/harbour 港

prairie 大草原

producer 农业工人

ranch 大农场/牧场

rancher 牧场主

reef 礁石

relief 地形，地貌

rural exodus 农村迁徙

rural population 农村人口

seaquake 海震，海啸

season 季节

shepherd 牧人

shore 海岸

source 源头

South pole 南极

southern 南的

straw/hay 麦秆

temperate zone 温带

termite 白蚁

terra firma 陆地

tilled land 耕地

torrid zone 热带

transplant 移植

the universe/the cosmos 宇宙

vegetation 植被

virgin forest 原始森林

wasteland/barren land 荒地

weed 除草

文化篇

abstract art 抽象派，抽象主义

allegory 寓言

amusement park 游乐园

arch 拱

art gallery 画廊,美术馆

artist 大师，艺术家

author 作者

Baroque 巴洛克式

best seller 畅销书

biography 自传

book of travels 游记

bronze 铜像

Byzantine 拜占庭式

carnival 狂欢节

carnival parade 狂欢节队伍

carving 雕刻

cast 模制品；阵容

choir合奏，合唱

Christmas carol 圣诞歌

cinema/movie theater 电影院

circus act 马戏节目

classical literature 古典文学

classicism 古典主义，古典风格

collection 收藏

comedy 喜剧

contemporary literature 现代文学

copyright 版权，著作权

costume 服装

critic 批评家

criticism 评论

dialogue 对白

drama 话剧

edition/printing 版

episode 轶事

essay 随笔

exhibition 展览

existentialism 存在主义

expressionism 表现主义

figure 塑像

film festival 电影节

film industry 电影工业

film society/film club 电影协会

film star/movie star 电影明星

firework display 焰火

first-run cinema 首轮影院

float 彩车

folklore 民间文学

futurism 未来主义

Gothic 哥特式

hymn/anthem 颂歌，国歌

impressionism 印象派；印象主义

inspiration 灵感，启发

light literature 通俗文学

masterpiece 杰作

naturalism 自然主义

neoclassicism 新古典主义

novel 长篇小说

original version 原著

paper lantern 纸灯

parade列队行进

play 剧本

popular literature 大众文学

premiere 首映式

psalm 赞美诗

realism 现实主义

reportage 报告文学

rhythm 节奏

Rococo 洛可可式

Romanesaue 罗马式

romanticism 浪漫主义

salon 沙龙

show 节目

solo 独奏,独唱

statue 人像

style 风格

surrealism 超现实主义

symbolism 象征主义

symphony 交响乐

theatre 戏剧

tragedy 悲剧

vault 穹顶

work 作品

workshop 工作间

生活篇

abolish 废止，取消

alley 胡同

ancestry 祖先，先辈

application(for a job) 求职

avenue (美)大街

bazaar 市场

birthrate 出生率

block 街区

boulevard 林荫大道

capital 首都

cathedral 大教堂

church 教堂

clause 条款

commercial vehicle 商用车

deathrate 死亡率

demography 人口统计

department stores 百货公司

dining car 餐车

dismissal 开除,解雇

district 区

double decker bus 双层公共汽车

draft 法案，草案

dustbin/trash can/garbage can 垃圾箱

express train 快车

威尼斯人官网，extended family 大家庭

extension 范围，扩展

family tree 家谱

flat 居住单元，套房

freight train 货运车

gross wages 全部收入

high street 大街，主要街道

hydrant 消火栓

immunity 豁免，豁免权