Make a lump sum investment

Assignment Help Financial Management
Reference no: EM131446122

My parents made a lump sum investment for me 50 years ago at 4.4% interest rate (compounded daily). Today, they gave my kids a check in the amount of $50,000, the total proceeds from their investment. How much did my parents originally invest?

Reference no: EM131446122

Questions Cloud

Developing a mobility program for an inpatient unit : To prepare for this assessment, you will need to think about changes you feel are needed to address a problem either within nursing as a professional field or within the organization where you work. Narrow down your options by considering which ch..
Network design for kids korner : To gain approval for a new network design, upgrade, or enhancement, you will have to present your network design, project costs, and project plan to all the stakeholders, which includes senior leadership. Through the last five weeks, you have crea..
What is the optimal decision strategy for dante : MGMT 4600- What is the optimal decision strategy for Dante, and what is the expected profit for this project? What would the cost of the market research study have to be before Dante would change its decision about the market research study?
Under what circumstances does the investor make profit : An investor buys put share for stock and $40. Under what circumstances does the investor make a profit? Under what tances will the option be exercised? diagram showing the variation of the investors profit with the stock price at the maturity of the ..
Make a lump sum investment : My parents made a lump sum investment for me 50 years ago at 4.4% interest rate (compounded daily). Today, they gave my kids a check in the amount of $50,000, the total proceeds from their investment. How much did my parents originally invest?
What is the main point of the article : In one sentence, what is the main point of the article and what counter-arguments or counter-points does the author make?
What is the present value of the depreciation tax shield : What is the present value of the depreciation tax shield resulting from depreciating a $150,000 capital expenditure over three years if the tax rate is 15% and the opportunity cost of capital 10%?
What are some possible threats to internal validity : Is this a qualitative or quantitative study? State your rationale for your answer.What is the study design?Is the design appropriate for the research question/hypothesis?What are some possible threats to internal validity?
How many valid host ip addresses are available : Given a Class C IP address subnetted with a /30 subnet mask, how many valid host IP addresses are available on each of the subnets?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the market price of face value bond

Gugenheim, Inc. offers a 7.25 percent coupon bond with annual payments. The yield to maturity is 4.025 percent and the maturity date is 10 years. What is the market price of a $1,000 face value bond?

  Forecasts the year-end free cash flows

Hadley Inc. forecasts the year-end free cash flows (in millions) shown below. Year 1 2 3 4 5 FCF -$22.39 $38.6 $43.9 $52.6 $55.8 The weighted average cost of capital is 10%, and the FCFs are expected to continue growing at a 3% rate after Year 5. The..

  Calculate the net present worth

A machine costs $980,000 to purchase and will provide $200,000 a year in benefits. The company plans to use the machine for 13 years and then will sell the machine and receive $20,000. The company’s interest rate is 12%. Calculate the Net Present Wor..

  Determine the firms after-tax cost of debt

Suppose today is January 1, 2016; on January 1, 2006, XYZ industries issued a 30-year bond with a 5% coupon, paid semi-annually, and a $1,000 face value payable on January 1, 2036. The bond now sells for $975. Assume a 34% tax rate. Use this bond to ..

  Dividend discount model-stock price

You expect Budweiser will pay dividends of 2.25 in one year, 2.50 in two years, and 2.75 in three years. From that point onwards, dividends will grow at 6% per year. Investors' required rate of return is 12%. According to the Dividend Discount Model,..

  Major risk of government reliant on short term financing

What is the major risk of a government being reliant on short term financing?

  Financing the purchase using the lease-equivalent loan

Riverton Mining plans to purchase or lease $435,000 worth of excavation equipment. If purchased, the equipment will be depreciated on a straight-line basis over five years, after which it will be worthless. Is Riverton better off leasing the equipmen..

  Requires an initial fixed asset investment

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.49 million. The fixed asset falls into the three-year MACRS class. The project is estimated to generate $2,010,000 in annual sale..

  What was the net income

Computer World Inc paid out $22.5 million in total common dividends and reported $278.9 million of retained earnings at year end. The prior year's retained earnings were $212.3 million. What was the net income? Assume all the dividends were actually ..

  Straight line be preferable to accelerated

What are the accounting and tax implications of using the MACR's accelerated cost recovery election for tax and other depreciation methods for financial accounting and reporting? What is the prospect of recapture on assets disposed before full cost r..

  Capacity planning-strategy and operational considerations

PRHats, a manufacturer of panama hats, must decide whether to build a large factory capacity or a small factory capacity in a particular location. The profit per hat manufactured is estimated as $15. Based on the information and using the correspondi..

  What will your annual loan payment be

Appalachian Bank offers you a $135,000, 5-year term loan at 6 percent annual interest. - What will your annual loan payment be?

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