Discuss run the pension fund for a small company

Assignment Help Accounting Basics
Reference no: EM131811262

You have been hired to run the pension fund for a small company with five employees. You estimate, based upon their ages and retirement schedules, that your liabilities under the plan will be as follows:

Years Expected cash payments

6-10 $100,000
11-20 $250,000
21-25 $100,000

You currently have $ 500,000 in investments in the plan. You want to fully fund all your above-listed liabilities by the end of year 5. How much would you have to set aside each year for the next five years to ensure this, if your opportunity cost is 8%?

Reference no: EM131811262

Questions Cloud

Find the center line if you had no standard : What is the purpose of the R chart? What is a typical sample size? How would you find the center line if you did have a standard?
Assess the quality and appropriateness of data : Imagine that you must collect and assess the quality and appropriateness of data held by a large, multi-national organization. What steps you would take?
Why will bonuses be negatively affected : Why will bonuses be negatively affected? What is the effect on pretax earnings? Discuss the ethical dilemma John Howard faces
What is the purpose of the percentage chart : What is the purpose of the percentage chart? How would you find the center line if you had no standard?
Discuss run the pension fund for a small company : How much would you have to set aside each year for the next five years to ensure this, if your opportunity cost is 8%
Determining the each given situation as per requirement : For each of the following situations, tell whether a Pareto diagram, an X chart, an R chart, or a percentage chart would be the most helpful.
Describe the it project you proposed for fwdc : This assignment gives you the opportunity to apply the course concepts to develop an IT Decision Paper to explain and defend an IT project
Complete a personal marketing plan : You will apply what you have learned about marketing to develop a Personal Marketing Plan presentation using PowerPoint
What is the current break-even point in units : The manager of Calypso, Inc. is considering raising its current price of $35 per unit by 10%. What is the current break-even point in units

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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