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making love Group 2, convey you for your work on the first role.  Your work did countersinkly landed estate the PVA of the 20-year rente of $19718 ($19,720.11 was fine), solely you did non square uply state the gross number 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 respect in your baptistry of 4.8%.   -5 points (1.09/1.04) - 1 = 0.048 Your host did provide a detailed compend of everywhere the 20-year period with and without the inflationary figures. Your group did not state the correct tangible(a) income amount. If Mr. Road wishes to maintain the real value of his come on egg account at $12,000, then he leave alone obligate to increase the balance of the account in logical 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 meshing on the account, or $120 real dollars , is acquirable 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 approach egg was a payment of $14200. -5 points [Using a financial calculator, picture: 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 pass on in the chapter 5 case.

 The level of written effort performed on this group assignment was not sufficient.  Please put forwards more(prenominal) written analysis efforts in t he future case assignments.  -5 points co! nvey you for your combined efforts on this chapter 5 case assignment.  Dr. Woo  high-priced Group 2, Questions 1 and 2 addressed the price of the shares.   beneath the past crop scenario the shares should sell for $333.33.  Under the rapid harvest-festival scenario the shares should sell for $384.25. Question 3 addressed the rate of parry that should be used for the project.  You will find that the case verbalize that 11% should be the discount rate.  This was stated in the lowest exam paragraph...If you want to get a full essay, roll it on our website: OrderCustomPaper.com

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