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expects sales to grow percent annually, nOW IOng WIII It Be BeIBre sales U8UBIE ? Jse a financial calculator to solve this problem. 5.24 Time to grow: You are going to deposit $850 in a bank CD today, and you will withdraw the noney only once the balance is $1,000. If the bank pays 5 percent interest, how long will it take for he balance to reach $1,000? 5.25 Time to grow: Neon Lights Company is a private company with sales of $1.3 million a year. Management wants to take the company public but has to wait until the sales reach $2 million. If sales are expected to grow 12 percent annually, when is the earliest that Neon Lights will go oublic? 5.26 Time to grow: You have just inherited $550,000. You plan to save this money and continue to ive off the money that you are earning in your current job. If you can invest the money in a bond hat pays 4.6 percent interest annually, how long will it be before your inheritance is worth $1 nillion? 2017

expects sales to grow percent annually, nOW IOng WIII It Be BeIBre sales U8UBIE ? Jse a financial calculator to solve this problem. 5.24 Time to grow: You are going to deposit $850 in a bank CD today, and you will withdraw the noney only once the balance is $1,000. If the bank pays 5 percent interest, how long will it take for he balance to reach $1,000? 5.25 Time to grow: Neon Lights Company is a private company with sales of $1.3 million a year. Management wants to take the company public but has to wait until the sales reach $2 million. If sales are expected to grow 12 percent annually, when is the earliest that Neon Lights will go oublic? 5.26 Time to grow: You have just inherited $550,000. You plan to save this money and continue to ive off the money that you are earning in your current job. If you can invest the money in a bond hat pays 4.6 percent interest annually, how long will it be before your inheritance is worth $1 nillion? 2017

Essentials Of Investments
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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I need the answer to 5.23 and 5.28.

5.23 Time to grow: Zephyr Sales Company has sales of $1.125 million. If the company's management expects sales to grow 6.5 percent annually, how long will it be before sales double? Use a financial calculator to solve this problem. 5.24 Time to grow: You are going to deposit $850 in a bank CD today, and you will withdraw the money only once the balance is $1,000. If the bank pays 5 percent interest, how long will it take for the balance to reach $1,000? 5.25 Time to grow: Neon Lights Company is a private company with sales of $1.3 million a year. Management wants to take the company public but has to wait until the sales reach $2 million. If sales are expected to grow 12 percent annually, when is the earliest that Neon Lights will go public? 5.26 Time to grow: You have just inherited $550,000. You plan to save this money and continue to live off the money that you are earning in your current job. If you can invest the money in a bond that pays 4.6 percent interest annually, how long will it be before your inheritance is worth $1 million? 5.27 Growth rates: Xenix Corp had sales of $353,866 in 2017. If management expects its sales to be $476,450 in three years, what is the rate at which the company's sales are expected to grow? 5.28 Growth rate: Infosys Technologies, Inc., an Indian technology company, reported net income of $419 million this year. Analysts expect the company's earnings to be $1.468 billion in five years. What is the expected growth rate in the company's earnings? 5.29 Present value: Caroline Weslin needs to decide whether to accept a bonus of $1,820 today or wait two years and receive $2,100 then. She can invest at 6 percent. What should she do? 5.30 Present value: Congress and the President have decided to increase the federal tax rate in an effort to reduce the budget deficit. Suppose that Caroline Weslin, from problem 5.29, will pay 35 percent of her bonus to the federal government for taxes if she accepts the bonus today and 40 percent if she receives her bonus in two years. Will the increase in tax rates affect her decision?
Transcribed Image Text:5.23 Time to grow: Zephyr Sales Company has sales of $1.125 million. If the company's management expects sales to grow 6.5 percent annually, how long will it be before sales double? Use a financial calculator to solve this problem. 5.24 Time to grow: You are going to deposit $850 in a bank CD today, and you will withdraw the money only once the balance is $1,000. If the bank pays 5 percent interest, how long will it take for the balance to reach $1,000? 5.25 Time to grow: Neon Lights Company is a private company with sales of $1.3 million a year. Management wants to take the company public but has to wait until the sales reach $2 million. If sales are expected to grow 12 percent annually, when is the earliest that Neon Lights will go public? 5.26 Time to grow: You have just inherited $550,000. You plan to save this money and continue to live off the money that you are earning in your current job. If you can invest the money in a bond that pays 4.6 percent interest annually, how long will it be before your inheritance is worth $1 million? 5.27 Growth rates: Xenix Corp had sales of $353,866 in 2017. If management expects its sales to be $476,450 in three years, what is the rate at which the company's sales are expected to grow? 5.28 Growth rate: Infosys Technologies, Inc., an Indian technology company, reported net income of $419 million this year. Analysts expect the company's earnings to be $1.468 billion in five years. What is the expected growth rate in the company's earnings? 5.29 Present value: Caroline Weslin needs to decide whether to accept a bonus of $1,820 today or wait two years and receive $2,100 then. She can invest at 6 percent. What should she do? 5.30 Present value: Congress and the President have decided to increase the federal tax rate in an effort to reduce the budget deficit. Suppose that Caroline Weslin, from problem 5.29, will pay 35 percent of her bonus to the federal government for taxes if she accepts the bonus today and 40 percent if she receives her bonus in two years. Will the increase in tax rates affect her decision?
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