Answered: Which is an example of a long-term… | bartleby

Corporate Fin Focused Approach

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 28P

See similar textbooks

Related questions

Question

Which is an example of a long-term capital accumulation goal:
O
Pay off credit cars at the end of each month and do not finance any purchases of appliances or similar
products.
O
O
Own substantial shares of mutual funds that pay dividends equivalent to 10% of family income by age 45.
Purchase a new car in 2 years
Buy sufficient disability insurance

Expert Solution

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Blurred answer

Similar questions

DO NOT USE EXCEL Harriet just inherited $50,000,000. She knows nothing about money management and has decided to educate herself in that area before making any major decisions. She has a short-term investment for that period. She has the choice between two investments:Investment A: at 6.5% compounded dailyInvestment B: at 7% compounded semi-annuallyi. Which option should she choose and why?
You deposit $2000 in a risky investment that loses 3 % interest yearly. Unfortunately, the money is tiedup in the investment and cannot be withdraw, a) Write a formula that represents the amount of your money in the account at the end of each year. b) How much money do you have in your account after 6 years? Show your work. Answer these questions, showing all your work and reasoning in the essay box here:
PLEASE TYPE IT AND NOT HANDWRITTEN A businessman invested P5,000,000 in a money market offered by a local bank. The money market pays an interest of 45% APR. How much is the amount of his investment after 3 years?
b) Homeshare rents out various newly built properties to low-income families. It hasrecently rented a flat to a client for £9,000 per year.A discount rate of 4% is used by Homeshare. Calculate the present value of thisrental income assuming it is expected to continue in perpetuity and there will be:i) No growth in annual rental income ii) 1.5% growth in rental income
Ma1. c) Your uncle has $250,000 invested at 7% and now he wants to retire. He wants to withdraw $35,000 at the end of each year, beginning at the end of this year. He also want to have $25,000 left to give you when he ceases to withdraw funds from the account. For how many years can he make the $35,000 withdraws and still have $25,000 left in the end?
Identify whether the situations described in the following table are examples of uneven cash flows or annuity payments: Description You recently moved to a new apartment and signed a contract to pay monthly rent to your landlord for a year. SOE Corp. hires an average of 10 people every year and matches the contribution of each employee toward his or her retirement fund. Franklinia Venture Capital (FVC) invested in a budding entrepreneur's restaurant. The restaurant owner promises to pay FVC 10% of the profit each month for the next 10 years. You have committed to deposit $600 in a fixed interest-bearing account every quarter for four years. Uneven Cash Flows O O Annuity Payments O O O O
What is the investment objective for a client who is 57 years old and planning to retire in 5 years? Select one: O a Preservation of capital and income. b. Growth. O c Developing a savings plan. Od. Preservation of capital. A PPN is issued with a NAV of $22.00, and is redeemed at $28 a month before maturity. Calculate the amount of tax per unit tha an investor in a 30% marginal tax bracket will owe at redemption. Select one: O a $0.90 Ob. $1.20 Oe $1.80 Od. $0.60 Which of the following institutions are not buy-side institutions? Select one: O a Trusts O b. Endowments Oc. Pension funds Od. Full-service dealers
4. A couple decides to invest some money in an account for use during retirement. Their goal is to have $100,000 in 40 years. The account pays 5.5% compounded monthly. A. How much do they need to invest to meet their goal? B. How much interest will they earn? C. What is the annual percentage yield? D. Prepare a table that shows the growth of the investment.
Answer the problem with complete solution. Don't use excel please. A young woman, 22 years old, has just graduated from college. She accepts a good job and desires to establish her own retirement fund. At the end of each month thereafter she plans to deposit P1200 in a fund at an interest of 15% compounded quarterly. How much will be accumulated when she reaches 60 years old?
a. Suppose that between the ages of 22 and 32, you contribute $7000 per year to a 401(k) and your employer contributes $3500 per year on your behalf The interest rate is 9 4% compounded annually What is the value of the 401(k) after 10 years? b. Suppose that after 10 years of working for this firm, you move on to a new job However, you keep your accumulated retirement funds in the 401(k) How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan? a. The value of the 4010) after 10 years is S (Do not round until the final answer. Then round to the nearest dollar as needed )
To offer scholarships to children of employees, a company invests $15,000 at the end of every three months in an annuity that pays 8% compounded quarterly a. How much will the company have in scholarship funds at the end of ten years? b. Find the interest Click the icon to view some finance formulas. a. The company will have sin scholarship funds (Do not round until the final answer. Then round to the nearest dollar as needed.)
Payback and ARR Each of the following scenarios is independent. All cash flows are after-tax cash flows. Required: 1. Brad Blaylock has purchased a tractor for $96,250. He expects to receive a net cash flow of $28,000 per year from the investment. What is the payback period for Jim? Round your answer to two decimal places.fill in the blank 1 years 2. Bertha Lafferty invested $370,000 in a laundromat. The facility has a 10-year life expectancy with no expected salvage value. The laundromat will produce a net cash flow of $120,000 per year. What is the accounting rate of return? Enter your answer as a whole percentage value (for example, 16% should be entered as "16" in the answer box).fill in the blank 2 % 3. Melannie Bayless has purchased a business building for $321,000. She expects to receive the following cash flows over a 10-year period: Year 1: $45,500 Year 2: $62,000 Year 3-10: $87,400 What is the payback period for Melannie? Round your answer to one decimal place.fill…

SEE MORE QUESTIONS

Recommended textbooks for you

Corporate Fin Focused Approach

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Financial Management: Theory & Practice

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Corporate Fin Focused Approach

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Financial Management: Theory & Practice

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

SEE MORE TEXTBOOKS