Computation of amount to be invested each year

Reference no: EM1310748

Computation of Amount to be invested each year for a target future value and Net Present Value of alternate investment options.

1. Susan Robinson is planning for her retirement. She is 30 years old today and would like to have $600,000 when she turns 55. She estimates that she will be able to earn a 9 percent rate of return on her retirement investments over time; she wants to set aside a constant amount of money every year ( at the end of the year) to help achieve her objectives. How much money must Robinson invest at the end of each of the next 25 years to realize her goal of $600,000 at the end of that time?

2. Two investment opportunities are open to you: Investment 1 and Investment 2. Each has an initial cost of $10,000. Assuming that you desire a 10 percent return on your initial investment, compute the net present value of the two alternatives and evaluate their relative attractiveness:

Investment 1		Investment 2
CasFlows	Year	Cash Flows	Year
$5,000	1	$8,000	1
6,000	2	7,000	2
7,000	3	6,000	3
8,000	4	5,000	4

Reference no: EM1310748

Questions Cloud

Should beryl''s iced tea continue to rent : Purchase a new, more advanced machine for $250,000. This machine will require $15,000 per year in ongoing maintenance expenses and will lower bottling costs by $10,000 per year. Should Beryl's Iced Tea continue to rent, purchase its current machine..

Non-provisional and provisional patent : Explain the difference between the non-provisional and the provisional patent.

Risks in the development of wearable pda : Assume an entrepreneur is proposing in order to design a wearable PDA which is unobtrusive and responds to the voice commands.

Operation to be done to complete reconciliation : Components of or items in bank reconciliation with example and operation to be done to complete reconciliation.

Computation of amount to be invested each year : Computation of Amount to be invested each year for a target future value and Net Present Value of alternate investment options.

Researcher of degree of tastiness : Participants indicate the degree of tastiness on a 10 point scale and the ratings appear in the given table. Tastiness scores tend to be skewed.

Prepare a bank reconciliation statement : Preparation of Bank Reconciliation Statement given the items and entries affecting the respective balances and Using the information below, prepare a bank reconciliation statement

Function to input the 20 integers in the range of 1 to 6. : In C Write down the main function in order to input the 20 integers in range of 1 to 6. Write down a function in order to count number of times the numbers 2 and 5 occur.

Cost benefit analysis on proposed project : Suppose a discount rate of 5%, do a cost benefit analysis on this proposed project over a five year period giving a recommendation and numerical explanation for your recommendation.

User Account

All Pages