How much money must be invested now in order to be able to

Assignment Help Finance Basics
Reference no: EM13567153

Assume you can invest money at a 14% rate of return. How much money must be invested now in order to be able to withdraw $5,000 from this investment at the end of each year for 8 years, the first withdrawal occurring one year from now?

A) $24,840

B) $23,195

C) $21,440

D) $1,755

Reference no: EM13567153

Questions Cloud

How much would you be willing to pay for this security if : suppose that you re considering the purchase of a security that has the following timeline of payments year interest
Assume sparkle co expects to sell 150 units next month the : assume sparkle co. expects to sell 150 units next month. the unit sales price is 100 unit variable cost is 35 and the
Marison company makes two products x and y the contribution : marison company makes two products x and y. the contribution margin for x is 2 and the contribution margin for y is 3.
Assume the company can find an overseas supplier of : witchs brew company manufactures and sells three potions that all use gargoyle eyelashes as an ingredient. the high
How much money must be invested now in order to be able to : assume you can invest money at a 14 rate of return. how much money must be invested now in order to be able to
Garvin enterprises bonds currently sell for 1150 they have : garvin enterprises bonds currently sell for 1150. they have a 6-year maturity an annual coupon of 85 and a par value of
Determine the total amount of overhead cost assigned to : the expected activity for the year was distributed among the companys four products as follows expected activity
Thornton company has an old factory machine that cost 50000 : thornton company has an old factory machine that cost 50000. the machine has accumulated depreciation of 28000.
How much would you have to invest today in the bank at an : how much would you have to invest today in the bank at an interest rate of 5 to have an annuity of 1400 per year for 5

Reviews

Write a Review

Finance Basics Questions & Answers

  Why do public utility company usually have capital structure

Why do public utility companies usually have capital structures that are different from those of retail firms?

  Description of present value of annuity

by using the proper PV Table and supposing a 12% annual interest rate, find out the present value on December 31, 2009 of the five period annual annuity of 10000 under each of following situations:

  What is the firm weighted average cost of capital

A firm has a cost of debt of 7.5 percent and a cost of equity of 16.2 percent. The debt-equity ratio is 0.45. There are no taxes. What is the firm's weighted average cost of capital?

  Accounting exposure

Pfizer operating in over 100 countries around the world, they conduct their financial operations in many currencies. Talk about the accounting exposure from their global operation.

  What is famas debt equity ratio

Fama's Llamas has a weighted average cost of capital of 9.8 percent. The company cost of equity is 15 percent, and its cost of debt is 7.5 percent. The tax rate is 35 percent. What is Fama's debt equity ratio?

  What is the maximum value of the house

What could you do to immunize the pension fund against changes in the interest rate and what are the benefits and drawbacks of this approach in practice? Explain your answer.

  Which alternative is better deal

Assume that if you take the rebate, you will apply it toward the purchase. Which alternative is better deal?

  American auto industry

Research on the American Auto Industry, issues relating to survival and current status on product, management, government intervention.

  What is investment banking how would an investment banker

1. what is investment banking? how would an investment banker assist an organization in going public? as a chief

  What is the firms operating cash flow

An all equity firm has net income of $27,300, depreciation of $7,400 and taxes of $2,050. what is the firms operating cash flow?

  Suppose you have 250000 to invest construct a diversified

1. suppose you have 250000 to invest. construct a diversified investment bportfolio in stock of six 6 companies traded

  Decision making among buy and lease

Decision making among buy and lease and Your landscaping company can lease a truck for $8000 a year (paid at year end) for 6 years

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