Question

Calculate CC =? 10% per year.

Invest $1,000,000 NOW

Invest another $1,000,000 5 years from now

Spend $10,000 per year at the end of each year, forever.

Spend $100,000 every 5 years forever.

Please show work.

Answer #1

Capitalized Cost = -1,000,000 - 1,000,000(P/F, 10%, 5) - 10,000 / 0.10 - [100,000(A/F, 10%, 5)] / 0.10

= -1,000,000 - 1,000,000(0.6209) - 10,000 / 0.10 - [100,000(0.1638)] / 0.10

= -1,000,000 - 620,900 - 100,000 - 163,800

= -$1,884,700

if venture investors invest $1,000,000 now, will
receive 25% of the exit value, and expect a 20% compounded rate of
return on their investment, what is the approximate expected exit
value at the end of 5 years?
a. 1,000,000
b. 2,490,000
c. 4,980,000
d. 7,470,000
e. 9,950,000
please show all work. thanks!

You are planning for retirement 34 years from now. You plan to
invest $3,100 per year for the first 5 years, $8,500 per year for
the next 10 years, and $10,700 per year for the following 19 years
(assume all cash flows occur at the end of each year). If you
believe you will earn an effective annual rate of return of 12.2%,
what will your retirement investment be worth 34 years from
now?
$58,073.60
$51,759.00
$2,310,735.22
$2,592,644.91
$1,163,838.30

You are planning for retirement 36 years from now. You plan to
invest $3,500 per year for the first 7 years, $7,500 per year for
the next 10 years, and $14,500 per year for the following 19 years
(assume all cash flows occur at the end of each year). If you
believe you will earn an effective annual rate of return of 11.0%,
what will your retirement investment be worth 36 years from
now?

You are planning for retirement 35 years from now. You plan to
invest $5,300 per year for the first 8 years, $6,800 per year for
the next 9 years, and $13,600 per year for the following 18 years
(assume all cash flows occur at the end of each year). If you
believe you will earn an effective annual rate of return of 10.3%,
what will your retirement investment be worth 35 years from
now?

Suppose that 5 years from now you will receive $10,000 at the
end of every year for 5 years. What is the present value of this
annuity if the opportunity cost rate is 5%?

You are planning for retirement 30 years from now. You plan to
invest $3,600 per year for the first 6 years, $7,800 per year for
the next 8 years, and $13,800 per year for the following 16 years
(assume all cash flows occur at the end of each year). If you
believe you will earn an effective annual rate of return of 12.1%,
what will your retirement investment be worth 30 years from
now?
Question 25 options:
$53,557.98
$1,648,134.07
$1,470,235.57...

Hurst Corp has the following investment opportunities available
to accumulate $50M ten years from now.
A. Invest $ 2,849,165 at the end of each year for 10 years.
B. Invest $591,366 at the end of every quarter for 40
quarters.
C. Invest $1,957,350 at the end of every six months for 20
semi-annual periods.
D. Invest $280,000 at the end of every month for 10 years.
Determine the RoR (Rate of Return per year) for each alternative
and which is...

Hurst Corp has the following investment opportunities available
to accumulate $50M ten years from now.
A. Invest $2,849,165 at the end of each year
for 10 years.
B. Invest $591,366 at the end of every quarter
for 40 quarters.
C. Invest $1,957,350 at the end of every six
months for 20 semi-annual periods.
D. Invest $280,000 at the end of every month
for 10 years.
Determine the RoR (Rate of Return per year) for
each alternative and which is the...

if
you invest 1,000 annually for 10 years earning 8 percent per year,
calculate the amount of money that you will have.
worked out please

You have decided to invest $1,000 at a rate of 10% per year
during the first 10 years. After that, you will be more
conservative and expect to earn 6% per year. How much will you have
accumulated at the end of 20 years from now?
Please use excel formulas for answer.

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