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
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(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
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(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
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You are planning for retirement 35 years from now. You plan to
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believe you will earn an effective annual rate of return of 10.3%,
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Suppose that 5 years from now you will receive $10,000 at the
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annuity if the opportunity cost rate is 5%?

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...

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:
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$1,648,134.07
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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 invest $25,000 today and $4000 per year for 32 years.
Assuming you earn an 8.5% rate of return, how much will you have at
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You want to borrow $25,000. For the loan to you must repay
$1100 every quarter (4 times per year) for the next 5 years plus
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interest are you paying?
Finally, assume you currently have $215,000...

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