hello tutor provide answer of this General accounting question Your current annual income is $50,000, growing at arate of 7% per year for 25 years. The discount rate is4%. Additionally, you have $120,000 saved up by theend of 15 years, with a return on investment of 9% peryear.Requirement:Calculate the allocation to equity today using thepresent value approach.

Step 1: DefinitionPresent Value of Future Income (Asset 1) : Future income is growing at a constant…

Answered: Your current annual income is $50,000,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Mike Derr Company expects to earn 8% per year on an investment that will pay $616,000 seven years from now. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Compute the present value of this investment. Future Value Table Factor Present Value
Mike Derr Company expects to earn 12% per year on an Investment that will pay $616,000 six years from now. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Compute the present value of this Investment. Future Value Table Factor Present Value
Today (t=0), you invested the starting prinipal of 1536 dollars. At the end of the first, second and third years, you will receive payments in the amount of 40%, 45% and 50% respectively of your initital investment. What is the net present value (NPV) of the investment if the minimum attractive rate of return (MARR) is 7.8%. Calculate the MARR for an NPV between $0 and $1 and draw the cash flow diagram.
Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.
What is the present value of an investment that pays $190 at the end of year 1, $107 at the year of year 2, and $235 at the end of year 3 if this investment earns 5% annually? your answer should be to the nearest dollar. For example, if your answer is id=mce_marker50, then input as 150.
Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive Negative
Mike Derr Company expects to earn 8% per year on an investment that will pay $616,000 ten years from now. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Compute the present value of this investment. Future Value $ 616,000 Table Factor Present Value
Calculate the geometric (average) return over the 5-year investment period. Year Price 0 19 1 22 2 20 3 23 4 25 5 27 Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321.
You are offered an investment with returns of $ 2,213 in year 1, $ 4,670 in year 2, and $ 3,184 in year 3. The investment will cost you $ 6,506 today. If the appropriate Cost of Capital is 7.6 %, what is the Net present Value of the investment?
Mike Derr Company expects to earn 8% per year on an investment that will pay $616,000 ten years from now. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Compute the present value of this investment. Future Value 616,000 X Table Factor Present Value
Suppose you makes a $1,000 initial investment today, a $4,000 additional investment at the end of year one, and another $500 investment at the end of year two. You had returns of 10% in year one, 2% in year two, and -5% in year three. What is the dollar-weighted average return on your investments? Select one: a. -2.59% b. 10.00% c. 0.51% d. -0.73% e. 3.00%
Determine the annual rate of interest, to the nearest tenth of a percent, given that the investment of $34 500 is compounded monthly and after 6 years is worth $49 750. use tvm solver or graphing calculator N= 1%= PV= PMT= FV= P/Y= C/Y= PMT: END BEGIN

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