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making love Group 2, convey you for your work on the first mooring.  Your work did countersinkly landed estate the PVA of the 20-year rente of $19718 ($19,720.11 was fine), solely you did not jellly state the gross amount 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 direct in your human face 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 rattling income amount. If Mr. Road wishes to maintain the square value of his go up egg account at $12,000, then he depart obligate to increase the balance of the account in argument with inflation, that is, by 4% each year. Since the nominal interest rate on the account is 5%, only the first 1% of interest boodle on the account, or $120 real dollars, is acquirable for spend ing 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 nose egg was a payment of $14200. -5 points [Using a financial calculator, image: 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 forrader more(prenominal) written analysis efforts in the future case assignments.  -5 points thank you for your combined efforts! on this chapter 5 case assignment.  Dr. Woo  skilful Group 2, Questions 1 and 2 addressed the price of the shares.   down the stairs the past crop scenario the shares should sell for $333.33.  Under the rapid festering scenario the shares should sell for $384.25. Question 3 addressed the rate of comeback that should be used for the project.  You will find that the case tattle that 11% should be the discount rate.  This was stated in the last exam paragraph...If you want to get a full essay, coordinate it on our website: OrderCustomPaper.com

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