Reference no: EM131180461
1. You are 35 years old today and are considering your retirement needs. You expect to retire at age 65 and your actuarial tables suggest that you will live to be 100. You want to move to the Bahamas when you retire. You estimate that it will cost you $ 300,000 to make the move (on your 65th birthday) and that your living expenses will be $30,000 a year (starting at the end of year 66 and continuing through the end of year 100) after that.
a. How much will you need to have saved by your retirement date to be able to afford this course of action?
b. You already have $50,000 in savings. If you can invest money, tax-free, at 8% a year, how much would you need to save each year for the next 30 years to be able to afford this retirement plan?
c. If you did not have any current savings and do not expect to be able to start saving money for the next 5 years, how much would you have to set aside each year after that to be able to afford this retirement plan?
2. You have been hired to run a pension fund for TelDet Inc, a small manufacturing firm. The firm currently has $5 million in the fund and expects to have cash inflows of $2 million a year for the first 5 years followed by cash outflows of $ 3 million a year for the next 5 years.
Assume that interest rates are at 8%.
a. How much money will be left in the fund at the end of the tenth year?
b. If you were required to pay a perpetuity after the tenth year (starting in year 11 and going through infinity) out of the balance left in the pension fund, how much could you afford to pay?
3. You have been asked to estimate the value of a 10-year bond with a coupon that will be low initially but it is expected to grow later in the bond's life. The coupon is expected to be 5% of the face value of the bond (which is $ 1000) for the first 5 years, and will increase by 1% every year for the next 5 years ñ the coupon rate will be 6% in year 6, 7% in year 7, 8% in year 8, 9% in year 9 and 10% in year 10. Estimate the value of this bond.
Develop a marketing plan
: Develop a marketing plan for entry or increase of market share for AVAST antivirus solution in Africa.- Describe the Project.
|
How you can convince move to even midatlantic south is worth
: You know these talented people can find other work even the present economy and wonder how you can convince them a move to even the mid-Atlantic South is worth exchanging for sea and surf.
|
Review companies of interest in areas of operations
: Select and review Operations and Supply / Value Chain as well as the global competitive landscape for one company in your industry using the IBISWorld and Mergent Online databases found in the University Library along with official company report..
|
What is your initial investment
: You are the manager of your own construction company and want to replace an old tractor you had bought seven years ago for $1,200,000. The asset has a useful life of 10 years and has been depreciating on a straight line basis. You purchase a new trac..
|
Estimate the value of a year bond
: You have been asked to estimate the value of a 10-year bond with a coupon that will be low initially but it is expected to grow later in the bond's life.
|
Advise dan whether he is entitled to compensation from toff
: Legal Studies LAW00720 ASSIGNMENT. Dan protested that he had never read the sign or the docket. Advise Dan whether he is entitled to compensation from Toff Dry Cleaners
|
What would required interest payment
: Yangru Corporation was offered a loan of $1,000,000 at a nominal rate of 8.5%, simple interest, with monthly interest payments and a 365-day year. The loan must be repaid at the end of one year, but until then only the monthly interest must be paid. ..
|
Which subcontractor should furnish the fire hose cabinets
: Which subcontractor should furnish the fire hose cabinets? Which subcontractor should install them? Which subcontractor should provide a fire extinguisher identified to be within the fire hose cabinet?
|
Effective annual rate under revolving credit agreement
: Cumberland Furniture wishes to establish a prearranged borrowing agreement with a local commercial bank. The bank's terms for a line of credit are 2.80% over the prime rate, and each year the borrowing must be reduced to zero for a 30-day period. Wha..
|