What will be the cost savings in 2013

Assignment Help Financial Management

Reference no: EM131884680

1. A capital investment generates cost savings of $1,000 in 2003. Assuming these costs increase with inflation, and the inflation rate is 4 percent, what will be the cost savings in 2013?

2. The consumer price index was 158.6 at the end of 1996 and 153.9 at the end of 1995. What was the inflation rate for 1996? 10-3. The consumer price index was 161.3 at the end of 1997. At a 3 percent inflation rate, what would be the consumer price index at the end of 1998? At the end of 2007?

3. Nancy Geer is considering an Associate degree in finance. She estimates that she will forgo after tax income of $9,600 a year (she will have a part-time job), during the two years it will take her to complete the degree, but her expenses will be $3,600 a year less than if she were working. Tuition will be $10,000 at the beginning of each year.

She estimates that her income will be $4,800 a year higher, after tax, for her 40-year working life if she receives the Associate degree.

She can borrow the money needed at an interest cost of 8 percent after tax. Suppose there is 3% inflation of wages after the degree is completed. Would you recommend that she pursue the Associate degree?

Reference no: EM131884680

Questions Cloud

What should tampico enterprises consider doing : Tampico Enterprises inventory turnover was 8.2 in 2X10. After analyzing several similar, competing companies, Tampico Enterprises found that the average.

What budget models is the application best applied : Discuss how the calculation of the coefficient of variation (ratio of the standard deviation to the mean) can be applied in budget variance analysis.

Write a program that prints a menu : Write a program that prints a menu. Based on the menu item selected by the user, the program should request the required inputs from the user.

What is ownership of the parties after full ratchet : Suppose founders own 70% of company ING and VC's preferred stock shares are convertible at $1 per share. VC#1 has already put in $5M.

What will be the cost savings in 2013 : suming these costs increase with inflation, and the inflation rate is 4 percent, what will be the cost savings in 2013?

What is a standard cost : What is a standard cost? Provide an example of a manufacturing standard cost. What is an ideal standard?

Create a park on some vacant property on the outskirts : A community wants to create a park on some vacant property on the outskirts of the town (zoned commercial).

Identify three alternatives to historical cost accounting : Topic - Current Developments in Accounting. Identify and describe three (3) alternatives to Historical Cost Accounting (HCA)

How we can arrive at economic value by giving two examples : Explain the four market multiple ratios which were identified in this question and comment on the value of this company.

User Account

All Pages