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1 year ago

8

_____ means the extent to which the idea is viable and realistic, and the extent to which you are aware of internal and external

forces that could affect your business. flexibility consistency feasibility innovation

1 answer:

Ostrovityanka [42]1 year ago

4 0

Flexibility is the word you’re looking for.

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Jenny wants a monthly retirement income of $12,000. She will retire on her birthday at age 70 with a $3,000 per month social sec

Vlada [557]

Answer:

Explanation:

Since she wants to receive the income per month, change the interest rate and duration on investment variables to monthly basis;

Out of the $12,000, find Jenny's own savings after deducting social security income & Pension benefit;

= 12,000 - 3,000 - 4,000 = $5,000

Since the 5,000 is recurring, it will be the PMT in annuity calculation.

<em>If marginal tax rate = 28%, find the aftertax nominal rate;</em>

<em>Pretax nominal rate = 7.9% or 0.079</em>

<em>After tax nominal rate = (1-0.28) *0.079</em>

<em>After tax nominal rate = 0.05688 or 5.688%</em>

Next, find the real interest rate using Fisher equation that applies the nominal rate and inflation rate

Real rate = [(1+Nominal) / (1+inflation) ] -1

=[(1+0.05688) / (1+0.026)] -1

= 1.0301 -1

= 0.0301

Real rate = 3.01%

Next, using financial calculator, enter the following inputs;

N = 95 - 70 = 25 years, but convert to months = 25*12 = 300

I/Y = 3.01% /12 = 0.2508%

PMT = 5,000

FV = 75,000*6 = 450,000

then CPT PV = $1,265,460.78

Therefore, she need to have saved $1,265,460.78

6 0

1 year ago

When the Federal Reserve sells a government bond to a primary dealer, reserves in the banking system ________ and the monetary b

Sindrei [870]

Answer: Increase; increases

When the Federal Reserve sells a government bond to a primary dealer, reserves in the banking system <u>increase </u>and the monetary base <u>increases</u>, everything else held. | This happens because when the Government bonds, the banking system will increase everything else held with it.

5 0

2 years ago

Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas

ratelena [41]

Answer:

A) $12,528

Explanation:

We should consider the rent payment as an annuity. Because we are paying, it should be considered the present value of an annuity.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 2,468

time 6

rate 0.05

$2468 \times \frac{1-(1+0.05)^{-6} }{0.05} = PV\\$

PV $12,526.8080

We are asked for the closet option, so we have to chose A) 12,528

6 0

1 year ago

Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart ha

Naily [24]

Answer

The answer and procedures of the exercise are attached in the following images.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 2 sheets with the formulas indications.

4 0

2 years ago

Rearden Metals is considering opening a strip mining operation to provide some of the raw materials needed in producing Rearden

melomori [17]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The initial purchase of the land and the associated costs of opening up mining operations will cost $100 million today. The mine is expected to generate $16 million worth of ore per year for the next 12 years. At the end of the 12th year Rearden will need to spend $20 million to restore the land to its original pristine nature appearance.

We need to sum each cash flow until the total initial investment is paid:

Number of years= 100,000,000/16,000,000= 6.25 years

To be exact:

0.25*365= 95 days

It will take 6 years and 95 days to recover the initial investment.

5 0

2 years ago