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making love Group 2, convey you for your work on the first en casing.  Your work did countersinkly landed estate the PVA of the 20-year rente of $19718 ($19,720.11 was fine), solely you did not objurgately state the gross standard 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 graze in your case 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 original income amount. If Mr. Road wishes to maintain the really value of his approach egg account at $12,000, then he leave alone obligate to increase the balance of the account in marge with inflation, that is, by 4% each year. Since the nominal interest rate on the account is 5%, only the first 1% of interest scratch on the account, or $120 real dollars, is acquira ble 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 snuggle egg was a payment of $14200. -5 points [Using a financial calculator, engrave: 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 in the chapter 5 case.

 The level of written effort performed on this group assignment was not sufficient.  Please put forward more(prenominal) written analysis efforts in the future case assi gnments.  -5 points give thanks you for y! our combined efforts on this chapter 5 case assignment.  Dr. Woo  practiced 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 addition scenario the shares should sell for $384.25. Question 3 addressed the rate of counter that should be used for the project.  You will find that the case evince that 11% should be the discount rate.  This was stated in the lowest exam paragraph...If you want to get a full essay, direct it on our website: OrderCustomPaper.com

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