What would be the value of deferred annuity

Assignment Help Finance Basics
Reference no: EM131441426

Question: Les Moore retired as president of Goodman Snack Foods Company but is currently on a consulting contract for $56,000 per year for the next 15 years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. If Mr. Moore's opportunity cost (potential return) is 8 percent, what is the present value of his consulting contract? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. Assuming Mr. Moore will not retire for two more years and will not start to receive his 15 payments until the end of the third year, what would be the value of his deferred annuity? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM131441426

Questions Cloud

What metrics will be used to determine success or failure : All products/services go through a life cycle of NPI (new product introduction), growth, maturity, decline and termination. These various stages affect the marketing strategy and promotional efforts. In Week 3, you will incorporate a product strat..
Provide a description of who you are and where you are from : Provide a brief description of who you are and where you are from. Include any details to help us get to know you such as your hobbies or special interests. Additionally, you are encouraged to include a photo!
How would you attack the peg if you were a speculator : ECO 365 - International Monetary Economics. Suppose that the Malaysian ringgit is pegged to the US dollar at 2.5 ringgit/$. The central bank of Malaysia has $1 billion of international reserves left. How would you attack the peg if you were a specu..
Contribute to organizational creativity and innovation : Identify one organizational stimulant, one core capability, and one intangible asset that will foster creativity and innovation. How they will contribute to organizational creativity and innovation?
What would be the value of deferred annuity : Les Moore retired as president of Goodman Snack Foods Company but is currently on a consulting contract for $56,000 per year for the next 15 years.
What was the interest rate on your loan : ECO/561- In your report, discuss how the trends in the Effective Federal Funds Rate compare with trends in inflation. If you took out a loan to pay for your "big-ticket" purchase, what was the interest rate on your loan?
Draw an organizational chart for dealership : Draw an organizational chart for this dealership. Identify the various management positions or titles on the chart and indicate the positions/jobs that would report to each.
Summarize two articles you selected from the npr website : Summarize two (2) articles you selected from the NPR Website. The two (2) article must be from within the last two (2) months.Describe the major adjustment issues discussed in each story.Examine at least three (3) evidence-based strategies from each ..
What key leadership principles will guide research : What key leadership principles will guide a research? What areas of business leadership are unclear that one may want to explore through further personal study?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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