Problem Set Two-MBA 503

9-17. Jack Hammer invests in a stock that accord conduct divid demolitions of $2.00 at the finish of the low gear stratum; $2.20 at the abate of the second course of study; and $2.40 at the devastation of the deuce-ace course of instruction. Also, he believes that at the end of the trey social class he will be competent to sell the stock for $33. What is the pass value of all future benefits if a discount pace of 11 portion is utilise? (Round all values to twain 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 prolific godfather has offered you a choice of iodine of the three following preferences: $10,000 straightaway; $2,000 a class for octonary yrs; or $24,000 at the end of eight socio-economic classs. a. presume you could realize 11 percent annually, which choice should you demand?b. If you could solve 12 percent annually, would you still choose t he same alternative?a. survival 11st category$10,000*1.11=11,1002nd stratum$11,100*1.11=12,3213rd twelvemonth$12,321*1.11=13, 676.314th stratum$13,676.31*1.11=15,180.705th year$15,180.70*1.11=16850.586th year$16,850.58*1.11=18,704.157th year$18,704.15*1.11=20,761.608th year$20,761.60*1.11=23,045.38Choice 21st year$2,0002nd year$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 earn 11% a year, I would choose to happen $24, 000.00 at the end of the ei ght years. b. Choice 11st year$10,000*1.12=1! 1,2002nd 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 bespeak $28,974 at the end of 10 years, and your only investment upshot is an 8 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an sign investment at the seed of the first year. 1. What single earnings could be made at the beginning of the first year to achieve this objective?2. What amount could you pay at the end of each... If you want to get a all-embracing essay, order it on our website: OrderCustomPaper.com

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