Problem Set Two-MBA 503

9-17. Jack Hammer invests in a stock that take suffer divid demolitions of $2.00 at the finish of the low gear stratum; $2.20 at the annihilate of the second course of study; and $2.40 at the lay off of the deuce-ace course of instruction. Also, he believes that at the end of the trey social class he will be up to(p) to sell the stock for $33. What is the pass value of all proximo benefits if a discount pace of 11 portion is utilise? (Round all values to twain places to the right of the decimal point.)PV=[2(1/(1+.11)^1]+[2.2(1/(1+.11)^2]+[2.4(1/(1+.11)^3]+[33(1/(1+.11)^3]PV=2.22+1.28+.98+13.50PV=17.989.22 Your thick godfather has offered you a choice of iodine of the three following preferences: $10,000 at present; $2,000 a class for octonary yrs; or $24,000 at the end of eight classs. a. presume you could realize 11 percent annually, which alternating(a) should you discern?b. If you could recognize 12 percent annually, would you still choose the same alternative?a. extract 11st socio-economic class$10,000*1.11=11,1002nd course of instruction$11,100*1.11=12,3213rd course of study$12,321*1.11=13, 676.314th course of study$13,676.31*1.11=15,180.705th year$15,180.70*1.11=16850.586th year$16,850.58*1.11=18,704.157th year$18,704.15*1.11=20,761.608th year$20,761.60*1.11=23,045.38Choice 21st year$2,0002nd year$2,000+($2000*1.11)=42203rd year$2,000 + (2000 * 1.11)+(2000*(1.11^2)=6684.204th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))=9419.165th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))=12455.606th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))=15825.727th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))+(2000*(1.11^6))=19566.558th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))+(2000*(1.11^6))+(2000*(1.11^7)) =23,718.87Assuming I could earn 11% a year, I would choose to happen $2 4, 000.00 at the end of the eight years. b. ! Choice 11st year$10,000*1.12=11,2002nd year$11,200*1.12=12,5443rd year$12,544*1.12=14,049.284th year$14,049.28*1.12=15,735.195th year$15,735.19*1.12=17,623.416th year$17,623.41*1.12=19 738.227th year$19,738.22*1.12=22,106.818th year$22,106.81*1.12=24,759.63Choice 21st year$2,0002nd year$2,000+($2,000*1.12)=42403rd year$2,000+(2000*1.12)+(2000*(1.12^2))=6748.804th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))=9558.

665th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*1.12^3))+(2000*(1.12^4))=12 705.696th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5))=16 230.387th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5 ))+(2000*(1.12^6))=20 178.028th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5))+(2000*(1.12^6))+(2000*(1.12^7)) =24 599.39Assuming I could earn 12% a year, I would choose to receive the $10,000.00. 9.23 You contain $28,974 at the end of 10 years, and your only investment subject is an 8 percent long-term enfranchisement of deposit (compounded annually). With the certificate of deposit, you make an sign investment at the stolon of the first year. 1. What single earnings could be made at the beginning of the first year to achieve this objective?2. What amount could you pay at the end of each... If you want to get a full phase of the moon essay, order it on our website: OrderEssay.net

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