Estimated value of their portfolio at the time of retirement

Assignment Help Financial Management

Reference no: EM131343255

Company have accumulated a portfolio currently valued at S875,000. They believe that they can earn an after-tax annual return of 8% on these funds. They would like to retire in 15 years

I. What will be the estimated value of their portfolio at the time of their retirement?

ll. What would the estimated value of their portfolio be if they deferred retirement for 5 more years?

Reference no: EM131343255

Questions Cloud

Foreign project generates a negative cash flow : When a U.S.-based MNC has a subsidiary in Mexico that needs financing, the MNC's exposure to exchange rate risk can be minimized if: A foreign project generates a negative cash flow in year 1 and positive cash flows in years 2 through 5. The NPV for ..

Liquids and solids can also consist of molecules : Discuss how the thickness (viscosity) of ethanol or aqueous film forming foams can be changed. Does the foam have a higher or lower molecular weight? Why, or why not? 200 words minimum.

Find the spring constant and amplitude velocity : A body of weight 196n is connected to a spring and distances covered by it is 6cm find the spring constant , amplitude velocity. time period horizental distances in positive x -axis acceleration and angle.

Project a will not produce any cash flows for two years : Project A will not produce any cash flows for two years. Starting in the third year, it will produce annual cash flows of $12,000 a year for three years. The project initially costs $56,000. In Year 6, the project will be closed and as a result shoul..

Estimated value of their portfolio at the time of retirement : Company have accumulated a portfolio currently valued at S875,000. They believe that they can earn an after-tax annual return of 8% on these funds. They would like to retire in 15 years. What will be the estimated value of their portfolio at the time..

What are some of the pleasant memories of your childhood : What are some of the pleasant memories of your childhood? What are some of the unpleasant memories? Use adverb clauses, and connectors to write about time, cause/effect, contrast and conditions.

Straight-line depreciation to zero over the five-year life : Consider a five-year project with the following information: initial fixed asset investment = $500,000; straight-line depreciation to zero over the five-year life; zero salvage value; price = $35 per unit; variable costs = $20 per unit; fixed costs =..

Draw up for each iv piggyback : A patient is to receive 2 million units of penicillin G potassium per day, every 6 hours in IV piggyback doses. The medication is available in vials of 1 million units/50mL, and each dose needs to be mixed in 50mL of D5W. How many mL will the nurs..

Net present value of the project given required return : Project A will produce operating cash flows of $50,000 a year for five years. The project requires $150,000 of new equipment that will be depreciated straight-line to a zero book value over five years. What is the net present value of the project giv..

User Account

All Pages