IcebergSlim
Diamond Member
- Oct 11, 2013
- 10,886
- 9,142
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- Banned
- #621
Your graph, or McDonald's menu.....View attachment 84178Actually, Big Macs in 2015 were 5.11 dollars...have your mommy help you read the graph....You're not in the habit of calculating compound growth rates, are you?To which "price" are you referring? If you rely on McDonald's for that bit of information, the price of a Big Mac has risen roughly in line with inflation at 1.6%......
Did you figure out how to use a TVM calculator?
Again, what does "TVM" have to do with it? Big Mac components are bought and sold in relatively narrow time. What does the Time Value of Money have to do with a build and sell transaction? Does this even make sense to you? TVM is used when you are for example making an investment now that will pay off years down the line. It has nothing to do with buying beef and lettuce and tomatoes and selling them now
Did you get through your MBA relying on chisanbop?
Begging the question.
Explain what buying ingredients, putting them together and selling them has to do with "compound growth rates?" Compounding what? Growth over what period?
You keep talking again about measuring long term investments. OK, but I'll play your game. When you said "TVM calculator," in Big Macs:
- What is the initial investment you are referring to?
- What discount rate are you going to use, and why?
- What is the investment term?
BTW, I don't use a "TVM calculator," I just program it into spreadsheets. The math is simple. What you don't know is what you are talking about. You're not even using the right terms for the discussion
I have no idea what you do for a living, but I'm quite sure what you don't....
Now pay attention and you won't wake up tomorrow nearly as fucking stupid as you are today....
Example....
The price of a Big Mac in 2009 is $3.57
The price of a Big Mac in 2016 is $3.99
Assuming that the increase is due entirely to inflation, derive the CPI deflator for the period...
TVM calculator
Set PV to 3.57
Set FV to 3.99
Set N to 7
Solve for I......
This is literally the first part of any finance curriculum.... At least at accredited institutions....
You are so out of your depth it's comical.
Tough call......