Problem Set Two-MBA 503

9-17. Jack Hammer invests in a stock that surr terminuser remuneration divid demolitions of $2.00 at the finish of the front stratum; $2.20 at the dying of the second course of study; and $2.40 at the end of the deuce-ace course of instruction. Also, he believes that at the end of the trinity social class he will be fitted to sell the stock for $33. What is the pass value of all future day benefits if a discount pace of 11 portion is use? (Round all values to twain places to the right of the decimal point.)PV=[2(1/(1+.11)^1]+[2.2(1/(1+.11)^2]+[2.4(1/(1+.11)^3]+[33(1/(1+.11)^3]PV=2.22+1.28+.98+13.50PV=17.989.22 Your bounteous godfather has offered you a choice of iodine of the three following preferences: $10,000 flat; $2,000 a class for octonary yrs; or $24,000 at the end of eight courses. a. presume you could realize 11 percent annually, which choice should you shoot?b. If you could realize 12 percent annually, would you still choose the same alternative ?a. plectron 11st course of instruction$10,000*1.11=11,1002nd course of instruction$11,100*1.11=12,3213rd grade$12,321*1.11=13, 676.314th grade$13,676.31*1.11=15,180.705th year$15,180.70*1.11=16850.586th year$16,850.58*1.11=18,704.157th year$18,704.15*1.11=20,761.608th year$20,761.60*1.11=23,045.38Choice 21st year$2,0002nd year$2,000+($2000*1.11)=42203rd year$2,000 + (2000 * 1.11)+(2000*(1.11^2)=6684.204th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))=9419.165th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))=12455.606th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))=15825.727th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))+(2000*(1.11^6))=19566.558th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))+(2000*(1.11^6))+(2000*(1.11^7)) =23,718.87Assuming I could earn 11% a year, I would choose to happen $24, 000.00 at the end of the e ight years. b. Choice 11st year$10,000*1.12=! 11,2002nd year$11,200*1.12=12,5443rd year$12,544*1.12=14,049.284th year$14,049.28*1.12=15,735.195th year$15,735.19*1.12=17,623.416th year$17,623.41*1.12=19 738.227th year$19,738.22*1.12=22,106.818th year$22,106.81*1.12=24,759.63Choice 21st year$2,0002nd year$2,000+($2,000*1.12)=42403rd year$2,000+(2000*1.12)+(2000*(1.12^2))=6748.804th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))=9558.665th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*1.12^3))+(2000*(1.12^4))=12 705.696th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5))=16 230.387th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5))+(2000*(1.12^6))=20 178.028th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5))+(2000*(1.12^6))+(2000*(1.12^7)) =24 599.39Assuming I could earn 12% a year, I would choose to receive the $10,000.00. 9.23 You pack $28,974 at the end of 10 years, and your only investment button is an 8 pe rcent long-term security department of deposit (compounded annually). With the certificate of deposit, you make an sign investment at the blood line of the first year. 1. What single earnings could be made at the beginning of the first year to achieve this objective?2. What amount could you pay at the end of each... If you want to get a replete essay, order it on our website: OrderCustomPaper.com

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