Planning to make annual deposits into retirement account

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1. You are planning to make annual deposits of $4,680 into a retirement account that pays 8 percent interest compounded monthly. How large will your account balance be in 25 years? (Do not round intermediate calculations and round your final answer to 2 decimal place.

2. Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash flow of $13,000,000 $23,000,000 and $29,000,000 over the next three years. The cost of capital is 20%. What is the payback period for this project?

3. An investor who pays taxes at the 28% marginal tax rate would need to earn what coupon rate on a corporate bond similar in all respects other than taxes to a 5% coupon municipal bond: 1.4% 2.5% 5% 6.94%

Reference no: EM131850815

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