Use present value of annuity table

Assignment Help Financial Management
Reference no: EM13921644

How much money does Melinda need to deposit into her investment account today if she wishes to withdraw $8,000 a year for twenty years? She expects to earn an average rate of return of 11 percent. (Choose the closest answer, use present value of annuity table)

a. $52,994

b. $73,541

c. $63,706

d. $74,141

e. $76,828

Reference no: EM13921644

Questions Cloud

Market share leader in radar detection systems : Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). Calculate the project’s Time 0 cash flow, taking into account a..
Analyze existing business strategies, industry for samsung : Analyze the business-level strategy of each company by conducting a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. Next, determine the fundamental way in which each sector influences its competitive position within the industry..
Given that revenue is the same for each period : Given that revenue is the same for each period, explain why net income increases each year.
Paragraph of reader response to the dickinson poem : Compose a paragraph of 'reader response' to the Dickinson poem and one of the Whitman poems. One paragraph each! Remember, 'reader response' asks that you connect with the poem in some personal way
Use present value of annuity table : How much money does Melinda need to deposit into her investment account today if she wishes to withdraw $8,000 a year for twenty years? She expects to earn an average rate of return of 11 percent. (Choose the closest answer, use present value of annu..
Will the author be happy with the book company output choice : Will the author be happy with the book company's output choice? Does the selected output maximize the joint profits (for both the author and company) from the book?
Separation performed by flash vaporization in a drum : Consider a vapor/liquid separation performed by flash vaporization in a drum:
Explain why ti might have made the given decision : TI made the decision to price its semiconductors substantially below its production costs. This decision increased sales, but resulted in near-term reductions in profits. Explain why TI might have made this decision.
When the owner contributed no assets to the business : Write a memo to explain how the business was able to generate retained earnings when the owner contributed no assets to the business.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the current yield of the bond and yield-to-maturity

The corporate bond of Blue Sky Industrial currently sells at $1,094.00. The bond has an annual coupon rate of 6% and a face value of $1,000. What is the current yield of the bond? A bond with 3 years remaining to maturity has an annual coupon rate of..

  Calculate the pv of the cash flows and then duration

Guess the duration of the following investment. Is it less than two years, two to three years, three to four years, or greater than four years? After your guess, use a discount rate of 6 percent and calculate the PV of the cash flows and then duratio..

  Equity firm and net income is projected to grow

Dora Corp. is an all equity firm and its net income is projected to grow 20% in year 1, 25% in year 2, and 30% in year 3, and then 5.5 constant growths thereafter. The retention ratio is held constant at 60% and year 0 net income is 70Millioin. The f..

  Explain the pros and cons of the two alternatives

An investment bank has been asked to underwrite an issue of 10 million shares by a company. It is trying to decide between a firm commitment where it buys the shares for $10 per share and best efforts where it charges a fee of 20 cents for each share..

  About the shares outstanding

Assuming BP has about 3 billion shares outstanding, how much (in terms of dollars) did BP’s shareholders lose due to the oil spill from the day of the explosion April /01/2015 to 6/28/10? Explain.

  Saving for retirement plan beginning

Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $53,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next yea..

  Calculate each stocks coefficient of variation

Calculate each stock’s coefficient of variation. Which stock is riskier for a diversified investor? Calculate each stock’s required rate of return. Calculate the required return of a portfolio that has $7,500 invested in Stock X and $2,500 invested i..

  Promissory note in the amount

Taking for Value Betty Ellis and her then husband W.G. Ellis executed and delivered to the Standard Finance Company (Standard) a promissory note in the amount of $2,800. After receiving the note, Standard issued a check to the couple for $2,800. The ..

  Costs of providing long-term care-anticipation of the costs

Given the increasing longevity of Americans and the costs of providing long-term care, anticipation of the costs should be a major element of every family’s financial planning. Current information suggests however, that very few families or individua..

  Treasury bonds with a coupon rate

Chere invested in $110,000.00 in Treasury bonds with a coupon rate of 8%. What is Cher's federal tax liability on the interest earned if Chere was in a 35% tax bracket?

  About the cash conversion cycle

Primrose Corp has $16 million of sales, $1 million of inventories, $2 million of receivables, and $2 million of payables. Its cost of goods sold is 75% of sales, and it finances working capital with bank loans at an 7% rate. How much cash would be fr..

  Used as the initial cash flow for building project

Samson's purchased a corner lot five years ago at a cost of $640,000. The lot was recently appraised at $820,000. At the time of the purchase, the company spent $50,000 to grade the lot and another $4,000 to build a small building on the lot to house..

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