After analyzing costs and forecasting revenue

Assignment Help Financial Management

Reference no: EM132041819

PLEASE SHOW ALL THE WORK (CALCULATION)

1) Justin has saved 50,000. He can invest it in a real estate venture that will pay 15% for 10 years, and then in a mutual fund for an additional 10 years at a 9.75 annual return. He’s hoping that in 20 years, when he is 40, he will have enough money to pay for his child’s college education, estimated at about $75000 per year. Will he have enough?

2) Jose decides to open a restaurant. After analyzing costs and forecasting revenue he realizes he can earn about a 14% return on his investment. What factors must Jose think about in making his decision?

Reference no: EM132041819

Questions Cloud

What is the value of the target firm to the bidding firm : Does the merger generate synergy? What is change in overall firm value from the merger? What is the value of the target firm to the bidding firm?

What are the different methods for achieving takeover : What are the different methods for achieving a takeover? What are some of the defensive tactics that firms use to thwart takeovers?

Currency swap-calculate the next payment each party makes : Consider a currency swap for $10 million and SF 15 million (Swiss francs). Calculate the next payment each party makes.

What is the current value of her winnings : Rita Gonzales won the $66 million lottery. What is the current value of her winnings?

After analyzing costs and forecasting revenue : Jose decides to open a restaurant. After analyzing costs and forecasting revenue he realizes he can earn about a 14% return on his investment.

Compute the new price of bond : Media Bias Inc. issued bonds 10 years ago at $1,000 per bond. The bonds have 20 years remaining until maturity. Compute the new price of the bond.

Debt payment in year is the book value plus interests : Given the value of debt today, the cost of debt (rD) is: hint: the promised debt payment in a year is the book value plus interests.

Description of the company and the company history : Description of the company and the company history. Include the current stock price and market capitalization of the company.

Would this project be good investment : What is the Net Present Value of this project? Would this project be a good investment?

User Account

All Pages