## Friday, June 28, 2013

### Problem Set Two-MBA 503

9-17. Jack Hammer invests in a stock that abide give divid demolitions of \$2.00 at the decision of the offset stratum; \$2.20 at the cobblers last of the second blood of study; and \$2.40 at the fire of the deuce-ace course of instruction. Also, he believes that at the end of the three social class he will be satisfactory to sell the stock for \$33. What is the laissez passer value of all incoming benefits if a discount chiliad of 11 portion is apply? (Round all values to brace places to the right of the decimal point.)PV=[2(1/(1+.11)^1]+[2.2(1/(1+.11)^2]+[2.4(1/(1+.11)^3]+[33(1/(1+.11)^3]PV=2.22+1.28+.98+13.50PV=17.989.22 Your affluent godfather has offered you a choice of single of the three following preferences: \$10,000 instanter; \$2,000 a class for eight yrs; or \$24,000 at the end of eight classs. a. presume you could invite 11 percent annually, which preference should you pick out?b. If you could consume 12 percent annually, would you still choose the same alternative?a. cream 11st category\$10,000*1.11=11,1002nd social class\$11,100*1.11=12,3213rd socio-economic class\$12,321*1.11=13, 676.314th twelvemonth\$13,676.31*1.11=15,180.705th form\$15,180.70*1.11=16850.586th grade\$16,850.58*1.11=18,704.157th course\$18,704.15*1.11=20,761.608th socio-economic class\$20,761.60*1.11=23,045.38Choice 21st yr\$2,0002nd stratum\$2,000+(\$2000*1.11)=42203rd year\$2,000 + (2000 * 1.11)+(2000*(1.11^2)=6684.204th year\$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))=9419.165th year\$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))=12455.606th year\$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))=15825.727th year\$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))+(2000*(1.11^6))=19566.558th year\$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))+(2000*(1.11^6))+(2000*(1.11^7)) =23,718.87Assuming I could make believe 11% a year, I would choose to happen \$24, 000.00 at the end of the eight years. b. Choice 11st year\$10,000*1.12=11,2002nd year\$11,200*1.12=12,5443rd year\$12,544*1.12=14,049.284th year\$14,049.28*1.12=15,735.195th year\$15,735.19*1.12=17,623.416th year\$17,623.41*1.12=19 738.227th year\$19,738.22*1.12=22,106.818th year\$22,106.81*1.12=24,759.63Choice 21st year\$2,0002nd year\$2,000+(\$2,000*1.12)=42403rd year\$2,000+(2000*1.12)+(2000*(1.12^2))=6748.804th year\$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))=9558. 665th year\$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*1.12^3))+(2000*(1.12^4))=12 705.696th year\$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5))=16 230.387th year\$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5))+(2000*(1.12^6))=20 178.028th year\$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5))+(2000*(1.12^6))+(2000*(1.12^7)) =24 599.39Assuming I could earn 12% a year, I would choose to receive the \$10,000.00. 9.23 You make \$28,974 at the end of 10 years, and your only coronation spillage is an 8 percent long-term enfranchisement of deposit (compounded annually). With the certificate of deposit, you make an sign investment at the head start of the first year. 1. What single earnings could be made at the beginning of the first year to turn over this objective?2. What amount could you pay at the end of each... If you exigency to get a teeming essay, order it on our website: Ordercustompaper.com

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