Continue generating this cash flow for your descendants

Assignment Help Financial Management

Reference no: EM131065341

You've decided that your family is comfortable living on an annual income of 150,000, growing at 4% per year. You'd also want to continue generating this cash flow for your descendants, forever. With interest rates of 8%, how much wealth would you need today to provide this income startng with 150,000 one year from now?

Please explain.

Reference no: EM131065341

Questions Cloud

Determine probability that postage forone particular week : What information would you need to determine the probability that postage forone particular week will exceed $400? Why wasn't this information required for(a)

Are employees treated as commodities at marriott : Are employees treated as commodities at Marriott? Is their labor policy cruelly capricious or caring? Is Marriott the exception to the rule among big companies?

Determine the standard deviation of this distribution : The normal range for cholesterol for an adult is 120 - 240mg/dl. A study found that the total cholesterol level for American adults has a mean of 159.2mg/dl and 84.1 of adults have a cholesterol level below 200mg/dl. Determine the standard deviati..

Aspect of a contemporary social problem : The topic of your project needs to be a contemporary societal problem, such as healthcare reform, immigration reform, privacy rights, euthanasia, First Amendment Rights, stem cell research, capital punishment, corporate prisons, legalizing drugs.

Continue generating this cash flow for your descendants : You've decided that your family is comfortable living on an annual income of 150,000, growing at 4% per year. You'd also want to continue generating this cash flow for your descendants, forever. With interest rates of 8%, how much wealth would you ne..

Prepare a pro forma balance sheet for the first twelve month : Prepare a pro forma balance sheet for the first twelve months of your business. Include the assumptions on which it is based. Justify your balance sheet.

Smoke-free employment policy : David’s employer has a smoke-free employment policy. This is not just a ban on smoking during work hours at the employer’s place of business, but instead prohibits tobacco use of any kind anywhere. On Monday morning, the supervisor advises David that..

Calculate the following financial ratios : Computing financial ratios. Using the data from Problem 23.1B, On Sales, Inc.,calculate the following financial ratios. Comment on any ratio that merits further ratios and do Horizontal Analysis and Vertical Analysis.

Claim of discrimination against multi-state : Jane applies for a new position with Multi-State Corporation, Inc. After the initial application review and interview, an HR manager at Multi-State does an internet search on Jane and finds that she is active in a national gay and lesbian organizatio..

User Account

All Pages