Considering replacing its swimming pool with new facility

Assignment Help Financial Management
Reference no: EM131925261

A community is considering replacing its swimming pool with a new facility. The total cost of the pool was $ 1.2 million when it was built in 2005. In 2005, the community got a donation of worth $1.2 million. Currently, the community is considering building the new facility in the year of 2060. If the inflation rate is 6% per year from 2005 to 2060. In 2005, the community invested the donation at a market interest rate of 8% per year. Define i, i′, f and actual dollar. Determine how many actual dollars in the 2060 will the gift be worth?

Reference no: EM131925261

Questions Cloud

Calculate the required return on microstrategy stock : Calculate the required return on MicroStrategy stock using the Capital Asset Pricing Model (CAPM) Security Market Line. Please show your work.
What is the real rate of return for a us long-term bond : Assume that the inflation rate during the last year was 1.94 percent. US long-term bonds had the nominal rates of return of 5.57 percent.
How many after-tax dollars will be accumulated : If 30,000 after-tax dollars are invested at 7% in a single-premium tax-deffered annuity, how many after-tax dollars will be accumulated in 20 years?
How much is olympia monthly lease payment on the tractor : The annual interest rate is 6%. How much is Olympia’s monthly lease payment on the tractor?
Considering replacing its swimming pool with new facility : A community is considering replacing its swimming pool with a new facility. Determine how many actual dollars in the 2060 will the gift be worth?
Examine the price fluctuation of agricultural products : The Agricultural Futures Exchange of Thailand was established in 2004 by the commerce ministry to help develop trading of futures contracts on rice, rubber.
Debt proceeds are used to repurchase equity : Assume debt proceeds are used to repurchase equity. Ignoring taxes, what will the company’s value be if it sells $33 million in debt?
Effect of taxes on various break-even measures : This problem concerns the effect of taxes on the various break-even measures. Calculate the accounting, cash, and financial break-even quantities.
How much money will you invest in given stock : How much money will you invest in stock Y? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer)

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd