Annuity payment required into the savings account

Assignment Help Financial Management

Reference no: EM131899279

A person has 40 years to retirement. They plan on making quarterly deposits into a savings account at the end of the quarter. The savings account returns 8% compounded quarterly. The person wishes to have $600,000 in todays dollars available to fund their retirement. The inflation rate for the next 40 years is 6% / year. What is the inflation adjusted amount that will be needed in the savings account to fund retirement in 40 years? What is the quarterly annuity payment required into the savings account?

The defender equipment has a remaining useful life of 2 yrs and a salvage value at the end of these two years of $12,000. The defender could be sold today for $30,000. The challenger cost $165,000, has a useful life of 8 years and a salvage value at the end of the 8 years of $5,000. The challenger lowers operating costs by $30,000 vs the defender. MARR for this organization is 12% /year compounded annually. Solve for the best option using AE.

The defender equipment has a remaining useful life of 5 yrs and a salvage value at the end of these two years of $5,000. The defender could be sold today for $10,000. The challenger cost $75,000, has a useful life of 5 years and zero salvage value at the end of the 8 years. The challenger lowers operating costs by $30,000 vs the defender. MARR for this organization is 15% /year compounded annually. Solve for the best option using AE.

Reference no: EM131899279

Questions Cloud

Differences and focus of mis systems and kms systems : ENTERPRISE INFORMATION SYSTEMS MBALN-736A - Explain the differences and focus of MIS systems and KMS systems. Research online, present a specific company

Element including and excluding electrons : Trying to determine mass of ONE atom of each element including and excluding electrons.

Marketing and operations functions of the company can impact : Describe how the decisions made by management, marketing and operations functions of the company can impact, and hopefully improve, these financial ratios.

Provide a summary of the purpose of federal agency : Select one federal administrative agency and provide a summary of the purpose and types of activities the agency regulates.

Annuity payment required into the savings account : What is the quarterly annuity payment required into the savings account?

Potassium dihydrogen phosphate : Calculate the pH of an aqueous solution that contains 0.135 M potassium hydrogen phosphate and 0.199 M potassium dihydrogen phosphate.

Discuss about the art of speaking with confidence : When I think about Public Speaking the first image that comes to mind is a room full of people making fun of every word that comes out of my mouth.

Calculate the ph of 1.00 l of a 0.286 m acetic acid : Calculate the pH of 1.00 L of a 0.286 M acetic acid solution before and after the addition of 0.472 mol of sodium acetate.

Calculate the annual depreciation allowances : Calculate the annual depreciation allowances and end-of-the-year book values for this equipment.

User Account

All Pages