Cash inflows of proposed project

Assignment Help Financial Management

Reference no: EM131948538

1. You are 21 year-old now and planning for your retirement. You are healthy and therefore expect to live long years. Based on your forecast, you feel that a monthly income of $10,000 starting at the age of 65 (at the end of 1st month) until the 90 year-old age will be enough. Assuming annual interest rate is 8% in the distribution period and 7% in the accumulation period, how much monthly contributions will be sufficient if you start to contribute at the end of this month (month-end contributions)?

a. $367.52

b. none of the above

c. $449.06

d. $343.84

e. $608.64

2. The number of time periods it will take before the cash inflows of a proposed project equal the amount of the initial project investment is known as:

a. none of the answers is correct.

b. net present value

c. payback period

d. mutually exclusive period

e. internal rate of return

Reference no: EM131948538

Questions Cloud

Find the bond price : A company issues a 10 percent coupon bond with 17 years maturity and $1,000 face (par) value. find the bond's price.

Share value is accounted for by the first three dividends : What percent of share value is accounted for by the first three dividends?

What should it charge for perpetual subscription : What should it charge for a perpetual subscription if the newspaper expects to raise its price by 4% annually (assume daily inflation is 1/365 the annual rate)?

What are your monthly mortgage payments : What are your monthly mortgage payments? What will be the amount of your final payment?

Cash inflows of proposed project : The number of time periods it will take before the cash inflows of a proposed project equal the amount of the initial project investment is known as.

Find the net present value of the project : If the required rate of return is 0.12, find the Net Present Value (NPV) of the project.

Withdraw equal amount of money every year in retirement : If you plan to withdraw an equal amount of money every year in retirement, how much will you be able to withdraw from your account every year?

What is present value of these trust payments : What is the present value of these trust payments if your opportunity cost is 10% annually?

Explain how balance sheet and income statement : Explain how a balance sheet and an income statement are constructed. What does the balance sheet tell you about how an organization functions?

User Account

All Pages