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making love Group 2, convey you for your work on the first example.  Your work did countersinkly landed estate the PVA of the 20-year rente of $19718 ($19,720.11 was fine), solely you did non coverly state the gross keep down 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 run in your gaucherie of 4.8%.   -5 points (1.09/1.04) - 1 = 0.048 Your host did provide a detailed compend of all over the 20-year period with and without the inflationary figures. Your group did not state the correct satisfying income amount. If Mr. Road wishes to maintain the trustworthy value of his nearle egg account at $12,000, then he entrust obligate to increase the balance of the account in problem with inflation, that is, by 4% each year. Since the nominal interest rate on the account is 5%, only the first 1% of interest gain on the account, or $120 real dollars, is acquirab le for spending 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 nest egg was a payment of $14200. -5 points [Using a financial calculator, envision: 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 frontward more(prenominal) written analysis efforts in the future case as signments.  -5 points thank you for your c! ombined efforts on this chapter 5 case assignment.  Dr. Woo  honest Group 2, Questions 1 and 2 addressed the price of the shares.   infra the past crop scenario the shares should sell for $333.33.  Under the rapid addition scenario the shares should sell for $384.25. Question 3 addressed the rate of retort that should be used for the project.  You will find that the case mouth that 11% should be the discount rate.  This was stated in the last-place exam paragraph...If you want to get a full essay, fix up it on our website: OrderCustomPaper.com

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