making love conference 2, convey you for your work on the first instance. Your work did countersinkly buy the farm estate the PVA of the 20-year annuity of $19718 ($19,720.11 was fine), solely you did not right on state the gross summate of income of $29318. -5 points Mr. route can guide: $19,718 + $600 + $9,000 = $29,318 per year Your work did not state the legitimate subscribe dictate in your deterrent example of 4.8%.  -5 points (1.09/1.04) - 1 = 0.048 Your host did result a detailed compend of everyplace the 20-year period with and without the inflationary figures. Your stem did not state the moderate trustworthy income amount. If Mr. Road wishes to find the palpable value of his populate egg account at $12,000, then he depart obligate to increase the correspondence of the account in dividing line with inflation, that is, by 4% from distributively one year. Since the nominal interest rate on the account is 5%, only the first 1% of interest dough on the account, or $120 real dollars, is acquirable for spending each year. The other 4% of earnings must(prenominal) be re-invested. So tote up real income is: $14,200 + $9,000 + $120 = $23,320 -5 points The real sum that can be spent out of inhabit egg was a payment of $14200. -5 points [Using a financial calculator, don: n = 20; i = 4.8; PV = (?)180,000; and then compute PMT = $14,200] Your case analysis did not quotation all of the individual questions communicate in the chapter 5 case.
 The take of written effort performed on this group assignment was not sufficient. Please put onward more(prenominal) written analysis efforts in the future case assignments. -5 points convey you for your combined efforts on this chapter 5 case assignment. Dr. Woo salutary Group 2, Questions 1 and 2 addressed the price of the shares.  downstairs the past crop scenario the shares should remove for $333.33. Under the rapid suppuration scenario the shares should sell for $384.25. Question 3 addressed the rate of counterpunch that should be used for the project. You will find that the case let loose that 11% should be the discount rate. This was stated in the lowest exam paragraph...If you want to get a full essay, ball club it on our website:
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