User Account

All Pages

Calculate the npv of rachel college tuition

Assignment Help Finance Basics
Reference no: EM132386433

Jan wants to plan for her daughter's education. Her daughter, Rachel was born today and will go to college at age 18 for four years. Tuition is currently $23,000 per year, in today's dollars. Jan anticipates tuition inflation of 6% and believes she can earn a 10% return on her investment.

  1. Calculate the NPV of Rachel's college tuition. (answer is 44,716.5)
  2. Calculate the annual savings needed assuming Jan will be saving until the beginning of her daughter's first year of college, with the first deposit to be made at the end of this year.
  3. Calculate the annual savings needed assuming Jan will be saving until the beginning of her daughter's last year of college, with the first deposit to be made at the end of this year.

Reference no: EM132386433

Questions Cloud

How many striders do you need to sell : What are your revenues, total expenses and profit if you sell 10,000 Striders. What are your revenues, expenses and profit.
Calculate the? bond current yield : A bond is priced in the market at ?$1,150 and has a coupon of 10?%. Calculate the? bond's current yield.
What is the new pe ratio : If MM has $25 million in debt with an interest rate of 8% (cost of capital (WACC) remains 14%), what is the new P/E ratio?
What would be the significant business risks in auditing : What would be the significant business risks in auditing that may result in risks of material misstatement for JB HI FI? The response paper should be in APA.
Calculate the npv of rachel college tuition : Jan wants to plan for her daughter's education. Her daughter, Rachel was born today and will go to college at age 18 for four years.
Compute the inventory at may 30 using lifo : The periodic inventory records are kept in units only compute the inventory at may 30 using LIFO and average cost.? Find the inventory using 1 FIFO and 2 LIFO?
Acting on behalf of existing shareholders : Does the project have a positive NPV? Acting on behalf of existing shareholders, should you take the project?
What rate of return does the bank expect to earn : If Mr. Bill believes there is a 100% probability that he will payback the loan, then what rate does Mr. Bill believe he is paying?
How do i calculate retained earnings : How do i calculate retained earnings based on this information (i need the formula):

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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