The Joshi Fish Farm (JFF), a saltwater aquarium company, is planning to expand its operations. It anticipates that an expansion will be undertaken in 5 years. In anticipation of the expansion, JFF invests money into a mutual fund that earns 7% compounded annually to finance the expansion. At the end of year 1, they invest $90,000. They increase the amount of their investment by $28,000 each year. How much will JFF have at the end of 5 years so that it can pay for the expansion? Click here to access the TVM Factor Table calculator.

The Joshi Fish Farm (JFF), a saltwater aquarium company, is planning to expand its operations. It anticipates that an expansion will be undertaken in 5 years. In anticipation of the expansion, JFF invests money into a mutual fund that earns 7% compounded annually to finance the expansion. At the end of year 1, they invest $90,000. They increase the amount of their investment by $28,000 each year. How much will JFF have at the end of 5 years so that it can pay for the expansion? Click here to access the TVM Factor Table calculator.

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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Similar questions

The Joshi Fish Farm (JFF), a saltwater aquarium company, is planning to expand its operations. It anticipates that an expansion will be undertaken in 3 years. In anticipation of the expansion, JFF invests money into a mutual fund that earns 6% compounded annually to finance the expansion. At the end of year 1, they invest $100,000. They increase the amount of their investment by $25,000 each year. How much will JFF have at the end of 3 years so that it can pay for the expansion?
an a&e firm planning for a future expansion deposited $36000 each year for 5 years into a sinking (investment) fund that was to pay an unknown rate of return. if the account had a total of $454000 immediately after the fifth deposit, what rate of return did the company make on these deposits?
Jack Sprat Inc. wants to know if they invest 11,548 in new exercise equipment, plus $2.000 for installation. how long before they will receive their initial invest back from future cash flows? What is the payback period for the initial costs? Projected Cash flows Year 1: 5,000 Year 2: 7,000 Year 3: 4,000 Year 4: 1,000 Post your answer as number of years with 2 decimal places, for example 5.55
Dog Care Co. wants to finance a new animal shelter by making eight annual deposits into a fund earning 11% compounded annually. The first four deposits are to be $19,000 each and will be paid at the beginning of the next four years. The last four deposits are to be $27,000 each and will be paid at the beginning of the last four years. The cost of the new animal shelter amounts to:
Blossom Googal owns a garage and is contemplating purchasing a tire retreading machine for $32.820. After estimating costs and revenues, Blossom projects a net cash inflow from the retreading machine of $4,700 annually for 11 years. Blossom hopes to earn a return of 8% on such investments. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the present value of the retreading operation? (Round answer to 2 decimal places, eg. 25.25) Present value 2$ Should Blossom Googal purchase the retreading machine?
A company has had record profits and decided to use some of the profits to pay for manufacturing improvements. If the company can invest $1,600,000.00 in an a annuity will that will make payments at the beginning of every six months for 4 years. If the annuity pays 5.6%, compounded semi-annual. What is the size of payments that the company can expect?The payment amount will be $. (Round to 2 decimal places.)
Andrew Bogut just received a signing bonus of $1,082, 000. His plan is to invest this payment in a fund that will earn 8%, compounded annually. (Use the tables below.) If Bogut plans to establish the AB Foundatiion? instead of investing the entire $1,082, 000, Bogut invests $287,300 today and plans to make 9 equal annual investments into the fund beginning one year from today. What amount should the payments be if Bogut plans to establish the $2, 162, 918 foundation at the end of 9 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e. g. 458, 581.)
please i need help
Peaceful Cruises wants to build a new cruise ship that has an initial investment of $200 million. It is estimated to provide an annual cash flow over the next 15 years of $24 million per year. The discount rate is 7%. What is the discounted payback period? Enter your answer rounded to two decimal places
The Hangover Diner is considering a project to build a new diner next to Saint Joseph's University with an initial cost of $555,000. Construction will take 2 years. The diner will open in year 3, so no cash will be received in the first 2 years. At the end of the third year, the diner expected to produce a cash inflow of $100,000. Starting in the fourth year the cash flows are expected to grow by 2.50% per year forever. What is the project's net present value today at a 15% discount rate? O -$22,711 $44,274 O $49,915 $58,552

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