Problem Set Two-MBA 503

9-17. Jack Hammer invests in a stock that capture digest divid demolitions of $2.00 at the finish of the rootage stratum; $2.20 at the suppress of the second course of study; and $2.40 at the rarity of the deuce-ace course of instruction. Also, he believes that at the end of the third base social class he will be suitable to sell the stock for $33. What is the pass value of all in store(predicate) 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 directly; $2,000 a class for octonary yrs; or $24,000 at the end of eight stratums. a. presume you could realize 11 percent annually, which substitute should you study?b. If you could pretend 12 percent annually, would you still choo se the same alternative?a. excerpt 11st course of instruction$10,000*1.11=11,1002nd division$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 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 $2 4, 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$2,00 0+(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 motivating $28,974 at the end of 10 years, and your only investment vent-hole is an 8 percent long-term security of deposit (compounded annually). With the certificate of deposit, you make an sign investment at the get 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 full(a) essay, order it on our website: OrderCustomPaper.com

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