Vinyl fence company in the future

Assignment Help Finance Basics
Reference no: EM132503863

You plan to expand your vinyl fence company in the future, and must purchase a new warehouse facility to achieve this goal. Your insurance company is offering you two very attractive investment options, an ordinary annuity and an annuity due, both compounding quarterly and paying 8% annual interest over a 5-year period. Your 5-year budget includes saving $2,500.00 each quarter. To evaluate which option will benefit the business most, you must evaluate both annuity options by calculating the future value of each option and explain how the investment will help you to carry out your goals.

Reference no: EM132503863

Questions Cloud

What is the overhead cost for the insurance company : If the driver's insurance premium is $2205.00, what is the overhead cost for the insurance company to insure the driver?
Calculate the incremental income before taxes : Calculate the incremental income before taxes from the new group of customers if 15 percent of the sales prove uncollectable
Determine why is mars considered so inhospitable : Define What would be needed to ensure humans could survive on Mars? In particular, where would we get our food, our oxygen, our water and our energy?
What is the value reported on the balance sheet : What is the value reported on the balance sheet at year end if the bond is classified as fair value through OCI?
Vinyl fence company in the future : You plan to expand your vinyl fence company in the future, and must purchase a new warehouse facility to achieve this goal.
What causes hurricanes and destroys hurricanes : With regards to our growing population, especially along the cost, why are we especially prone to huge losses when a hurricane hits?
Calculate its yield as quoted in the market : Lett's commercial paper is presently selling at a discount. It sells for 97.29 of par and matures in 120 days. Calculate its yield as quoted in the market
What is the variance of the returns : A stock had returns of 18.33 percent, -5.43 percent, and 20.66 percent for the past three years. What is the variance of the returns?
Do you believe that the programs should be implemented : Imagine that you are a victim of a property crime. The offender convicted of stealing your vehicle has been accepted into the work release program and will be.

Reviews

Write a Review

Finance Basics Questions & Answers

  Real value of retirement income

Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income th

  Announcement of the debt issue

What is the expected return on the company's equity before the announcement of the debt issue? Construct the company's market value balance sheet before the announcement of the debt issue. What is the price per share of the firm's equity?

  How do you interpret a peg ratio

In an equity research report, an analyst calculates a forward earnings yield of 12 percent. Noting that this yield is considerably higher than the 7 percent.

  Calculating the loan amount

Assume Subaru of America, Inc. wishes to borrow money from UBS. They agree on annual rate of 10%. Assume Subaru agrees to repay $500 million at the end of four years. How much will UBS lend Subaru?

  Rick thomas corp just issued a dividend of 240 per share on

rick thomas corp. just issued a dividend of 2.40 per share on its common stock. the company is expected to maintain a

  What problems might robert encounter in comparing

What problems might Robert encounter in comparing these companies to one another on the basis of their ratios? Why might the current and quick ratios for the electric utility and the fast-food stock be so much lower than the same ratios for the other..

  A cpa selects a medical care plan

Your friend Taliesha Jackson of Stillwater, Oklahoma, recently changed to a new job as a CPA in a moderate-size accounting firm. Knowing that you were taking a personal finance course, she asked your advice about selecting the best health insuranc..

  What was the annual rate of return

After the third year, you sold the stock for $35. What was the annual rate of return?

  Prepare a personal analysis of the payout options for bob

Prepare a personal analysis of the payout options for Bob, Chad and Dylan. Designate the preferred option for each individual and explain why

  Assuming an annual interest rate

Calculate the present value of $30,000 to be received in 5 years assuming an annual interest rate of 10%, compounded monthly. $18,627.64

  How the bond price will be expected to adjust across time

Given the problem above, identify how the bond price will be expected to adjust across time as the bond approaches maturity.

  Construct a table showing the payoff

Construct a table showing the payoff and profit from the strategy. For what range of stock prices would the strategy lead to a loss?

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