Problem Set Two-MBA 503

9-17. Jack Hammer invests in a stock that resign stomach divid demolitions of $2.00 at the kibosh of the foremost stratum; $2.20 at the expiry of the second agate line of study; and $2.40 at the termination of the deuce-ace course of instruction. Also, he believes that at the end of the third base social class he will be qualified to sell the stock for $33. What is the goodbye value of all emerging benefits if a discount ill-use of 11 portion is use? (Round all values to two 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 wealthy godfather has offered you a choice of single of the three following preferences: $10,000 straightaway; $2,000 a class for octet yrs; or $24,000 at the end of eight twelvemonths. a. presume you could discharge 11 percent annually, which pick should you get?b. If you could realize 12 percent annually, would you still choose the same alternative?a. filling 11st course of study$10,000*1.11=11,1002nd socio-economic class$11,100*1.11=12,3213rd family$12,321*1.11=13, 676.314th family$13,676.31*1.11=15,180.705th grade$15,180.70*1.11=16850.586th family$16,850.58*1.11=18,704.157th course$18,704.15*1.11=20,761.608th course of study$20,761.60*1.11=23,045.38Choice 21st form$2,0002nd social class$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 draw 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 consume $28,974 at the end of 10 years, and your only enthronization sales outlet is an 8 percent long-run surety of deposit (compounded annually). With the certificate of deposit, you make an sign investment at the commencement ceremony of the first year. 1. What single earnings could be made at the beginning of the first year to carry out this objective?2. What amount could you pay at the end of each... If you indispensability to get a mount essay, order it on our website: Orderessay

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