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Thursday, 28 August 2014 by

Can you help me with this assignment? You are considering going to graduate business school in three years. Current Total costs of graduate school are estimated to be $32,000 per year, but those costs are expected to grow each year at the rate of inflation (3.7% per year). You intend to enter a two-year program.

You have the option of extending your annuity another 10 years. If you pay more money today, you can continue to recieve $1,500 per year for another 10 years. How much more should you be willing to pay to extend the annuity? (original annuity was 10 year that promises to pay $1500 at the end

What is the maximum amount you would pay for an asset that generates an income of $150,000 at the end of each of five years if the opportunity cost using funds of 9%? Explain the concept and the calculations.

(1) Based on the current interest rate environment, are there specific maturities you’d favor? What about floating rate bonds in the current interest rate environment…what are your thoughts with regard to those? Lastly…there are treasury bonds called TIPS…explain what they are and what advantages and/or disadvantages you see for such investments? (4-3) An annuity is

What is the present value of an ordinary annuity that pays $4,800 per year for 8 years, assuming the annual discount rate is 7 percent? a. $22,349.15 b. $35,887.85 c. $28,662.23 d. $30,668.59 e. $2,793.64

Your client is 45 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $9,000 per year, and you advise her to invest it in securities which you expect to provide an average annual return of 10 percent. If she follows your

HIGH DESERT GOLF CLUB High Desert Golf Club (HDGC), located in Rifle, Colorado, was a public golf course, owned by a private corporation. In January the club’s manager, Lee Jeffries, was faced with a decision involving replacement of the club’s fleet of 40 battery-powered golf carts. The old carts had been purchased five years ago,

4.1 If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years? 4.2 What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually? 4.6 What is the future value of

You have a chance to buy an annuity that pays $5,000 at the beginning of each year for 5 years. You could earn 4.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? a. $20,701 b. $21,791 c. $22,938 d. $24,085 e. $25,289

1-Apply the FCFF model to value a firm given the following assumptions:  EBIT is $15,000,000.  Depreciation is $2,000,000.  Change in working capital is a negative $225,000.  Expected capital expenditures is $4,000,000.  The firm has an outstanding zero-coupon bond issue with a remaining maturity of 10 years and a current price

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