A lot of people love a cup of high-quality coffee

Assignment Help Financial Management
Reference no: EM131965863

A lot of people love a cup of high-quality coffee bought at their favorite coffee shop on a daily basis. Imagine that instead of buying that cup, you instead invest the money into the stock market for a modest 6% annual return. How much would you accumulate by the time you retire? You will need to make the following assumptions: 1) Come up with a reasonable price for a cup of coffee (or tea if you don't drink coffee). If you don't buy coffee every day, imagine that you do; 2) Just add up the total monthly cost you spend on coffee (tea) - this total monthly cost is your monthly investment (at 6% per year, but you can use 0.5% per month); 3) Determine your retirement date (how many years/months away). Show your calculations of Future Value.

Reference no: EM131965863

Questions Cloud

Interest rates would cause the surplus to shrink to zero : Aproximately what change in interest rates would cause the surplus to shrink to zero? You can ignore convexity effects for this question.
Why the future price converges to the spot price : Explain why the future price converges to the spot price? What would happen if this did not occur?
What is the predicted impact on the return of your portfolio : What is the predicted impact on the return of your portfolio? What is the predicted impact on the return of the index?
What is the modified duration of each portfolio : What is the modified duration of each portfolio? Which portfolio has the greater amount of convexity and why?
A lot of people love a cup of high-quality coffee : A lot of people love a cup of high-quality coffee bought at their favorite coffee shop on a daily basis. How much would you accumulate by the time you retire?
What is present value of the annual cash flow : What is the present value of the annual cash flow that is expected in 5 years from today?
The present date as savings to cover the expected liability : Calculate the amount the firm would need on the present date as savings to cover the expected liability.
Expected to generate no cash flows for several years : A building is expected to generate no cash flows for several years and then generate annual cash flows forever.
You are able to buy your dream car after graduation : How much do you need to invest today so that you are able to buy your dream car after graduation?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd