User Account

All Pages

What is the future value of the lump sum 5 years

Assignment Help Business Management
Reference no: EM132233573

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

Reference no: EM132233573

Questions Cloud

What ideas do you have for new nonprofit : What ideas do you have for a new nonprofit? How would you go about finding out if your idea is worth pursuing?
Amortizing monthly payments : You are considering to buy a $250,000 property with a 80% LTV ratio and have two mortgage choices: a FRM or a FRM with an IO period.
Write annotated summary of each article : Write annotated summary of each article. Use APA throughout. As an IT professional, discuss how you will use Balanced Scorecard to manage IT resources.
Determine the weighted-average number of shares : Determine the weighted-average number of shares that Culver Corporation would use in calculating earnings per share for the fiscal year ended
What is the future value of the lump sum 5 years : 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?
How do you overcome employee apathy toward policy compliance : ISOL631 What are the differences between flat and hierarchical organizations? How do you overcome employee apathy toward policy compliance?
What is the bond market price : The par value is $1,000, and the coupon rate equals 7%. If the market's required return on the bond is 8% then what is the bond's market price?
Stock purchase on a company debt ratio : Does this suggest another use for excess cash? (And: What are the alternative uses for excess cash? And what does each use imply about the firm?
Why is it that increasing sample size reduces probability : Why is it that increasing the sample size reduces the probability of a Type II error to an acceptable level? (350 words)

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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