Choose the same alternative

Assignment Help Business Management
Reference no: EM131157379

Your rich godfather has offered you a choice of one of the three following alternatives: $10,000 now; $2,000 a year for eight years; or $24,000 at the end of eight years. Assuming you could earn 11 percent annually, which alternative should you choose? If you could earn 12 percent annually, would you still choose the same alternative?

Reference no: EM131157379

Questions Cloud

What is annual rate of return : On January 1, 2002, Mike Irwin, Jr., bought 100 shares of stock at $14 per share. On December 31, 2008, he sold the stock for $21 per share. What is his annual rate of return? Interpolate to find the exact answer.
What is the npv and irr : what is the NPV and IRR? -  Is it worth to do this investment? Explain -  Does it create more return? Explain - How will you determine what is your next step? Explain
How important was training in helping roll out the system : How important was training in helping roll out the system to Shell personnel? The Blog topic is based on ‘Shell Canada Fuels Productivity with ERP' (Section 17/Chapter 12 Case Study), Integrating the Enterprise, IS Function & IS Technologies.
Entire balance in bank account to invest : Sue Sussman started a paper route on January 1, 2002. Every three months, she deposits $500 in her bank account, which earns 4 percent annually but is compounded quarterly. On December 31, 2005 she used the entire balance in her bank account to in..
Choose the same alternative : Your rich godfather has offered you a choice of one of the three following alternatives: $10,000 now; $2,000 a year for eight years; or $24,000 at the end of eight years. Assuming you could earn 11 percent annually, which alternative should you ch..
What is the future value : What is the future value of a 10-year annuity of $4,000 per period where payments come at the beginning of each period? The interest rate is 12 percent.
Which is more difficult to accomplish and why : Compare and contrast the process of securing the land borders and the coastal waterways from international terrorism. Are there any similar principles involved? What are the glaring differences?
Analyze the roles and responsibilities of financial managers : Analyze the roles and responsibilities of financial managers in confirming compliance with federal and shareholder requirements.
What is the optimal stocking level : The cost of baking a cake is $6, and demand is estimated to be normally distributed, with a mean of 25 and a standard deviation of 4. What is the optimal stocking level?

Reviews

Write a Review

Business Management Questions & Answers

  What is the cost of direct materials used

What is the cost of direct materials used?

  Food and beverage in the gaming industrywhat is the

food and beverage in the gaming industry?what is the importance of food and beverage in the gaming industry? how is it

  Using inventory control models, and excel

Using inventory control models, and excel Determine how much to order

  Illustrate what type of entrepreneur

Using an organization's existing resources to launch new products and generate new profits is an example of illustrate what type of entrepreneur?

  Explain the contract provided that the balloons

Explain The contract provided that the balloons were to be manufactured in accordance with Johnson's specifications.

  Feasible set and the efficient frontier

Find the feasible set and the efficient frontier generated by these three projects. If there is a risk-free asset with rate = 0.02, find now the feasible set and the efficient frontier. What are the efficient proportions of wealth invested in the p..

  Calculate the stock''s beta over the past year relative

Describe the steps you showed in completing. Conduct a linear regression for Bank of America to calculate the stock's beta over the past year relative

  Proportional income tax system

Suppose the U.S. has a proportional income tax system. The flat rate is 15%, but a taxpayer's first $25,000 is exempt from federal tax. Therefore, if Jim made a gross income of $80,000 las year, what would be his tax liability?

  Competency-based thinking vs activity

competency-based thinking vs. activity based-approachdescribe whether competence-based thinking is more suitable for

  Describe the competitive strategies

Describe the following competitive strategies and use at least two corporate examples

  Operations of business organisations

Stakeholders have influence on the operations of business organisations and they expect to be treatedfairly by these organisations. Identify five (5) stakeholders of an organisation and explain their expectations.

  First pick a publicly traded healthcare company ideally a

first pick a publicly traded healthcare company. ideally a hospital corporation and that too with one that has the

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