What type of investment return will need to earn

Assignment Help Financial Accounting
Reference no: EM132567994

Question1 : Lumumba needs to have Sh.1, 500,000 at the end of 5 years in order to fulfill his goal of purchasing a sports car. He is willing to invest the amount as a lump sum today but wonders what type of investment return he will need to earn. Figure out the annual compound rate of return needed in each of the following cases.

a. Lumumba can invest Sh.1

b. , 020,000 today.

c. Lumumba can invest Sh.815,000 today

d. Lumumba can invest Sh.715,000 today

Reference no: EM132567994

Questions Cloud

What the warranty expense related to the sales would be : At the end of the 2017 the warranty liability and the warranty expense related to these sales would be?During 2017, Smith Electronics sold 250 microwaves
What is Agarma effective tax rate : The estimated warranty liability related to company sales in 2019 was $19,600. What is Agarma's effective tax rate for 2019
What is the maximum future value obtainable : What is the maximum future value obtainable give the Sh.150,000 deposit, 2-year time period, and 12% nominal rate? Using your findings in a to explain
Calculate Agarma future income tax balances : Calculate Agarma's future income tax balances at December 31, 2019 and specify whether they are assets or liabilities
What type of investment return will need to earn : What type of investment return he will need to earn. Figure out the annual compound rate of return needed in each of the case
Policies of american red cross organization : Examine the various personnale practices and policies of the American Red Cross organization
Prepare bank reconcilliation sandhill co : Prepare Bank Reconcilliation Sandhill Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2019
Determine the weighted average number of common shares : Determine the weighted average number of common shares to be used to calculate Oak and Maple's basic earnings per share (EPS) for the year ending
Analyze the voting trends in texas for presidential : Analyze the voting trends in Texas for presidential, gubernatorial, and constitutional amendment elections.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Beginning cash balance-cash payments-minimum cash balance

Assume the following information for the month of August. June sales = $40,000; July sales = $65,000; August sales = $52,850. All sales are on account and are collected as follows: 20% in the current month, 50% in the month following, 25% in the seco..

  Compute the fixed costs per watch

Chahta Enterprises makes watches. Each watch requires materials worth $12.00 and 2 direct labor hours. The supervisor is paid $700.00 per week. The hourly rate is $10.00 for workers. If 25 watches are made per week, compute the fixed costs per watch.

  How much is landlines gross profit

How much is Landline's gross profit if they use (a) the Gross method? (b) the Net method and Landline Corporation is a public company with a calendar year-end. Landline provides a wide variety of telecommunications services to a number of different..

  What is the amount of total assets to be reported

A company was recently formed with $50,000 cash contributed to the company by stock-holders. What is the amount of total assets to be reported

  What is the amount of the firms gross profit

Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold of $35,025,000; and interest expense of $750,000. What is the amount of the firm’s gross profit?

  What would be best control method to prevent

If customers attempt to sell more shares of a stock or spend more money than they have in their account, what would be best control method to prevent this problem?

  How much is the investment worth at the end of year four

You are able reinvest these cash flows at 12.00 percent, compounded annually. How much is this investment worth at the end of year four?

  Describe the auditors responsibility for fraud detection

Audit Procedures for fraud detection in the revenue process. Assume that you have been assigned to the audit of Itakian Home Stores., which sells Italian furniture and home furnishings in two retail shops and on a website for online sales. Describe t..

  The fixed overhead budget and volume variances

Morton Company’s variable manufacturing overhead should be $4.50 per standard direct labor-hour and fixed manufacturing should be $270,000 per year. The company manufactures a single product that requires two direct labor-hours to complete.  Determin..

  Amount of money she will have to invest today

a. If Sarah can earn 8 percent annually for the next 25 ?years, the amount of money she will have to invest today is ?$_________?

  Significance of recognizing the time value of money

What's the significance of recognizing the time value of money in the long term impact of the capital budgeting decision?

  What would be effect on the companys debt to equity ratio

What would be the effect on the company's debt to equity ratio, and what would be the effect on the percentage ownership of the company by other stockholders?

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