Reference no: EM131561622
Business Discussion Questions
Initial Investment
After reading Chapters 3 and 4 of your textbook, address each of the following questions:
• Think of something you want or need for which you currently do not have the funds. It could be a vehicle, boat, horse, jewelry, property, vacation, college fund, retirement money, etc. Select something which costs somewhere between $2,000 and $50,000. Use the "Present Value Formula", which computes how much money you need to start with now to achieve the desired monetary goal. Assume you will find an investment that promises somewhere between 5% and 10% interest on your money (you choose the rate) and pretend you want to purchase your desired item in 12 years. (Remember that the higher the return, usually the riskier the investment, so think carefully before deciding on the interest rate.) How much do you need to invest today to reach that desired amount 12 years from now?
• You wish to leave an endowment for your heirs that goes into effect 50 years from today. You don't want to be forgotten after you pass so you wish to leave an endowment that will pay for a grand soirée yearly and forever. What amount would you like spent yearly to fund this grand party? How much money do you have to leave to your heirs 50 years from now assuming that will compound at 6% interest? Assuming that you have not invested anything today, how much would you have to invest yearly to fully fund the annuity in 50 years, again assuming a 6% monthly compounding rate?
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Identify three factors of production
: Identify three factors of production, and describe how their mobility is good or bad for U.S. trade.
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What is the maximum tax deferred amount
: What is the maximum tax deferred amount that may be contributed to an employee's traditional 401K plan in 2016.
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Prepare the journal entry to record the issuance
: On December 31, 2017, Sayers Nissan issued $3 million of 10-year, 10% debentures. Compute the proceeds from the issuance and prepare the journal entry to record
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Calculate cost of the preferred stock
: Cost of preferred stock Taylor Systems has just issued preferred stock. Calculate the cost of the preferred stock.
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How much would you have to invest yearly to fully fund
: How much would you have to invest yearly to fully fund the annuity in 50 years, again assuming a 6 percent monthly compounding rate?
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Find the reciprocal of the given expression
: In analyzing the displacement of a certain valve, the expression (x2 - 2x - 2)/(x4 + 4) is used.
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What is the irr on the investment
: Assume that the Central park Zoo is considering investing $5,000 today in popcorn maker. What is the IRR on the investment ?
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Project costs of capital for lower-risk and average-risk
: What are reasonable values for the project costs of capital for lower-risk, average-risk, and higher-risk project?
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Prepare a consolidation worksheet for the year ended
: Jet Corp. acquired all of the outstanding shares of Nittle Inc. on January 1, 2009, for $644,000 in cash. Prepare a consolidation worksheet for the year ended
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