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making love Group 2, convey you for your work on the first scale.  Your work did countersinkly landed estate the PVA of the 20-year rente of $19718 ($19,720.11 was fine), solely you did not putly state the gross summate of income of $29318. -5 points Mr. route can spend: $19,718 + $600 + $9,000 = $29,318 per year Your work did not state the legitimate take regularize in your study of 4.8%.   -5 points (1.09/1.04) - 1 = 0.048 Your host did provide a detailed compend of over the 20-year period with and without the inflationary figures. Your group did not state the correct corpo objective income amount. If Mr. Road wishes to maintain the real value of his dwell egg account at $12,000, then he get out obligate to increase the balance of the account in pipeline with inflation, that is, by 4% each year. Since the nominal interest rate on the account is 5%, only the first 1% of interest meshing on the account, or $120 real dollars, is acquirable for sp ending each year. The other 4% of earnings must(prenominal) be re-invested. So total real income is: $14,200 + $9,000 + $120 = $23,320 -5 points The real sum that can be spent out of draw near egg was a payment of $14200. -5 points [Using a financial calculator, acquiesce: n = 20; i = 4.8; PV = (?)180,000; and then compute PMT = $14,200] Your case analysis did not address all of the individual questions bespeak in the chapter 5 case.

 The level of written effort performed on this group assignment was not sufficient.  Please put by more(prenominal) written analysis efforts in the future case assignments .  -5 points give thanks you for your com! bined efforts on this chapter 5 case assignment.  Dr. Woo  lamb Group 2, Questions 1 and 2 addressed the price of the shares.   below the past crop scenario the shares should sell for $333.33.  Under the rapid development scenario the shares should sell for $384.25. Question 3 addressed the rate of snack bar that should be used for the project.  You will find that the case convey that 11% should be the discount rate.  This was stated in the utmost exam paragraph...If you want to get a full essay, rewrite it on our website: OrderCustomPaper.com

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