### What is the future value of the lump sum

Assignment Help Finance Basics
##### Reference no: EM132234907

Kristi Jones has just contracted to sell land she inherited a few years ago. buyer is willing to pay \$24,000 now(year 0) or the series of payments shown below. Kristi plans to invest any received payments in an account that earns 7% annual interest. She wants to buy a house in 5 yrs..WHat is the option that has the highest future value at the time? Year 1-Payment \$2,000, Year 2 - Payment \$4,000, Year 3- payment 6,000, Year 4- Payment - \$8,000, Year 5-10,000.

a. What is the future value of the lump sum 5 years from now?

b. What is the future value of the mixed stream five years from now?

c. Based on your findings in parts a &b , which should Kristi take?

d. If Kristi could earn 10% rather than 7% on the funds, would your recommendation in part c. change ? Explain

#### What are the pros and cons of setting a target rating

Some corporations' debt-equity targets are expressed not as a debt ratio but as a target debt rating on the firm's outstanding bonds. What are the pros and cons of setting a

#### What type of agency cost is this provision

If a manager signs a contract with a strict provision prohibiting the manager from competing against this company if the manager leaves the company, what type of agency cost

#### What is the most recent stock price listed for tesla

You used Tesla as a representative company to estimate the cost of capital for SMI. What are some of the potential problems with this approach in this situation? What improv

#### Calculate christie''s cash conversion cycle

Calculate Christie's cash conversion cycle. Assuming Christie holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Suppose

#### Amortization to reflect that after ten years

Then change the amortization to reflect that after ten years, Sherry and Sam will increase their monthly payment to \$7,500 per month. When will they fully repay the mortgage

#### Market participants and the vigor of price competition

The solution gives a right answer and description on the following problems: Is a market confined to all corporations and individuals willing and able to buy or sell a particu

#### What amount of time is necessary to realize given situation

I anticipate having the amount of \$4,000.00 after an unknown period of time. The monetary present worth is \$2,357.35. The rate is 4.7%. What amount of time is necessary to r

#### Benefits of a systems development methodology

Why is a systems development process needed? What are the benefits of following a systems development methodology? Write briefly on your experiences (or someone else's you h