Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question

Transcribed Image Text:9.
Go to the Earnings Projections worksheet. Pranjali has entered most of the income and
expense data on the worksheet. She knows the income from municipal grants will be
$25,000 in 2022, and estimates it will be $40,000 in 2026. She needs to calculate the
income from municipal grants in the years 2023-2025. The grants should increase at a
constant amount from year to year.
Project the income from Municipal grants for 2023-2025 (cells D5:F5) using a Linear
Trend interpolation.
10. Pranjali also needs to calculate the income from insurance reimbursements in the years
2023-2025. She knows the starting amount and has estimated the amount in 2026. She
thinks this income will increase by a constant percentage.
Project the income from Insurance reimbursements for 2023-2025 (cells D7:F7) using a
Growth Trend interpolation.
11. Pranjali needs to calculate the payroll expenses in the years 2023-2026. She knows the
payroll will be $140,000 in 2022 and will increase by at least five percent per year.
Project the payroll expenses as follows:
a.
b.
Project the expenses for Payroll for 2023-2026 (cells D13:G13) using a Growth
Trend extrapolation.
Use 1.05 (a 5 percent increase) as the step value.
Praniali
Į
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