1 You plan to retire at age 40 after a highly successful but short career You would like to accumulate enough money by age 40 to withdraw $241,000 per year for 40 years You plan to pay into your account 15 equal installments beginning when you are 25 and ending when you are 39 Your account bears interest of 14 percent per year UseAppendix Aattached for your reference (Use appropriate factor(s) from the tables provided ) Required a How much do you need to accumulate in your account by the time you retire (Round your final answer to the nearest dollar amount ) b How much do you need to pay into your account in each of the 15 equal installments (Round your final answer to 2 decimal places ) 2 Washington County's Board of Representatives is considering the construction of a longer runway at the county airport Currently, the airport can handle only private aircraft and small commuter jets A new, long runway would enable the airport to handle the midsize jets used on many domestic flights Data pertinent to the board's decision appear below Cost of acquiring additional land for runway$75,000 Cost of runway construction355,000 Cost of extending perimeter fence23,158 Cost of runway lights40,000 Annual cost of maintaining new runway20,000 Annual incremental revenue from landing fees45,000 In addition to the preceding data, two other facts are relevant to the decision First, a longer runway will require a new snowplow, which will cost $155,000 The old snowplow could be sold now for $15,500 The new, larger plow will cost $13,000 more in annual operating costs Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community The board projects that the increased economic activity will result in $66,000 per year in additional tax revenue for the county In analyzing the runway proposal, the board has decided to use a 10 year time horizon The county's hurdle rate for capital projects is 6 percent UseAppendix Afor your reference (Use appropriate factor(s) from the tables provided ) Required a Compute the initial cost of the investment in the long runway b Compute the annual net cost or benefit from the runway c Determine the IRR on the proposed long runway (Round your answer to the nearest whole percent ) d Should it be built considering IRR e In analyzing the runway proposal, the board has decided to use a 10 year time horizon The county's hurdle rate for capital projects is 6 percent The County Board of Representatives believes that if the county conducts a promotional effort costing $35,500 per year, the proposed long runway will result in substantially greater economic development than was projected originally However, the board is uncertain about the actual increase in county tax revenue that will result Required Suppose the board builds the long runway and conducts the promotional campaign What would the increase in the county's annual tax revenue need to be in order for the proposed runway's internal rate of return to equal the county's hurdle rate of 6 percent (Round intermediate and final answer to the nearest dollar amount ) 3 The chief ranger of the state's Department of Natural Resources is considering a new plan for fighting forest fires in the state's forest lands The current plan uses eight fire control stations, which are scattered throughout the interior of the state forest Each station has a four person staff, whose annual compensation totals $390,000 Other costs of operating each base amount to $290,000 per year The equipment at each base has a current salvage value of $310,000 The buildings at these interior stations have no other use To demolish them would cost $29,000 each The chief ranger is considering an alternative plan, which involves four fire control stations located on the perimeter of the state forest Each station would require a six person staff, with annual compensation costs of $490,000 Other operating costs would be $300,000 per base Building each perimeter station would cost $390,000 The perimeter bases would need helicopters and other equipment costing $690,000 per station Half of the equipment from the interior stations could be used at the perimeter stations Therefore, only half of the equipment at the interior stations would be sold if the perimeter stations were built The state uses a 10 percent hurdle rate for all capital projects The chief ranger has decided to use a 15 year time period for the analysis UseAppendix Afor your reference (Use appropriate factor(s) from the tables provided ) Required 3a Use the incremental cost approach for a net present value analysis of the chief ranger's decision between the interior fire control plan and the perimeter fire control plan (Round your Discount factors to 3 decimal places Negative amounts should be indicated by a minus sign ) 4 Answer each of the following independent questions Ignore personal income taxes UseAppendix Afor your reference (Use appropriate factor(s) from the tables provided ) Required 4a Suppose you invest $3,800 in an account bearing interest at the rate of 10 percent per year What will be the future value of your investment in five years 4b Your best friend won the state lottery and has offered to give you $11,300 in four years, after he has made his first million dollars You figure that if you had the money today, you could invest it at 8 percent annual interest What is the present value of your friend's future gift 4c In four years, you would like to buy a small cabin in the mountains You estimate that the property will cost you $65,500 when you are ready to buy How much money would you need to invest each year in an account bearing interest at the rate of 4 percent per year in order to accumulate the $65,500 purchase price 4d You have estimated that your educational expenses over the next four years will be $14,300 per year How much money do you need in your account now in order to withdraw the required amount each year Your account bears interest at 6 percent per year 5 The supervisor of the county Department of Transportation (DOT) is considering the replacement of some machinery This machinery has zero book value but its current market value is $820 One possible alternative is to invest in new machinery, which has a cost of $39,200 This new machinery would produce estimated annual operating cash savings of $12,600 The estimated useful life of the new machinery is four years The DOT uses straight line depreciation The new machinery has an estimated salvage value of $2,020 at the end of four years The investment in the new machinery would require an additional investment in working capital of $3,000, which would be recovered after four years If the DOT accepts this investment proposal, disposal of the old machinery and investment in the new equipment will take place on December 31, 20x1 The cash flows from the investment will occur during the calendar years 20x2 through 20x5 UseAppendix Afor your reference (Use appropriate factor(s) from the tables provided ) Required Makeepar anet present value analysis of the county DOT's machinery replacement decision The county has a 10 percent hurdle rate including the acquisition cost investment in working capital recovery of working capital, salvage value of old machinery salvage value of new machinery annual operating cash savings total cash flow discount factor present value, and net present value (Round your Discount factors to 3 decimal places and final dollar amounts to whole dollars Negative amounts should be indicated by a minus sign ) 6 The owner of Waco Waffle House is considering an expansion of the business He has identified two alternatives, as follows Build a new restaurant near the mall Buy and renovate an old building downtown for the new restaurant The projected cash flows from these two alternatives are shown below The owner of the restaurant uses a 10 percent after tax discount rate Investment Proposal Cash Outflow Time 0 Net After Tax (Years 1 10) Cash Inflows Years 1 10(Years 11 20) Mall restaurant $619,000 $76,000 $76,000 Downtown restaurant 266,000 47,000 Includes after tax cash flows from all sources, including incremental revenue, incremental expenses, and depreciation tax shield UseAppendix A for your reference (Use appropriate factor(s) from the tables provided ) Required 6a Compute the net present value of each alternative restaurant site 6b Compute the profitability index for each alternative 6c How do the two sites rank in terms of NPV and the profitability index APPENDIX A Future Value and Present Value Tables Table I Period 4 6 8 10 12 14 20 Future Value of $1 00(1 ) 1 040 1 060 1 080 1 100 1 120 1 140 1 200 1 082 1 124 1 166 1 210 1 254 1 300 1 440 1 125 1 191 1 260 1 331 1 405 1 482 1 728 1 170 1 263 1 361 1 464 1 574 1 689 2 074 1 217 1 338 1 469 1 611 762 1 925 2 488 1 265 1 419 1 587 1 772 1 974 2 195 2 986 1 31 1 504 1 714 1 949 2 211 2 502 3 583 1 36 1 594 1 851 2 144 2 476 2 853 4 300 1 423 1 690 1 999 2 359 2 773 3 252 5 160 1 480 1 791 2 159 2 594 3 106 3 707 6 192 1 540 1 898 2 332 2 853 3 479 4 226 7 430 1 601 2 012 2 518 3 139 3 896 4 818 8 916 1 665 2 133 2 720 3 452 4 364 5 492 10 690 1 732 2 261 2 937 3 798 4 887 6 261 12 83 1 801 2 397 3 172 4 177 5,474 7 138 15 407 2 191 3 207 4 661 6 728 9 646 13 74 38 338 3 24 5 744 10 063 17 450 29 960 50 950 37 380 10 4 801 10 286 21 725 45 260 93 051 188 880 1,469 800 Table II Period 4 6 8 10 12 14 20 Future Value of a Series of 1 000 1 000 1 000 1,000 1 000 1 000 1 000 $1 00 Cash Flows 2 060 2 080 2 100 2 120 2 140 2 220 (Ordinary Annuity) 2 040 (1 1) 1 3 12 3 184 3 246 3 31 3 374 3 440 3 640 4 247 4 375 1 506 4 641 4 779 4,921 5 368 5 416 5 637 5 867 6 105 6 353 6 610 7 442 3 633 6 975 7 336 7 716 8 115 8 536 9 930 7 898 3 394 8 923 9 487 10 089 10 730 2 916 9 214 9 898 10 637 1 436 2 300 13 233 16 499 10 583 11 491 12 488 13 58 14,776 16 085 20 799 10 12 006 13 181 14 487 15 938 17 549 19 337 25 959 13 486 14 972 16 646 18 531 20 655 23 045 32 150 15 026 16 870 18 977 21 385 24 133 27 271 39 580 13 16 627 18 882 21 49 24 523 28 029 32 089 48 497 18 292 21 015 24 215 27 976 32 393 37 581 59 19 20 024 23 276 27 152 31 773 37 280 43 842 72 035 20 29 778 36 778 45 762 57 276 75 052 91 025 186 690 56 085 79 058 113 283 164 496 241 330 356 790 1,181 900 95 026 154 762 259 057 442 597 767 090 1,342 000 7,343 900 Table III Present Value of $1 00 ( 1 1 )n Period 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 758 962 943 926 909 893 877 86 847 833 820 806 794 781 769 574 925 890 857 826 797 769 743 718 672 650 630 610 592 455 435 889 840 794 751 712 675 641 609 579 551 524 500 477 350 329 355 792 735 683 636 592 552 516 182 451 423 397 373 747 681 621 567 519 476 437 102 370 341 315 291 269 250 822 790 705 630 564 507 456 410 370 335 303 275 250 227 207 189 760 665 583 513 452 400 354 314 279 249 222 198 178 159 143 540 108 327 123 73 467 404 351 305 266 233 204 179 157 139 424 361 308 263 225 194 167 144 125 108 094 082 703 592 500 676 558 463 386 322 270 227 191 162 137 116 099 085 073 062 047 650 527 429 350 287 237 195 162 135 112 094 079 066 056 625 497 397 319 257 208 168 137 112 092 076 062 052 043 036 601 469 368 290 229 182 145 116 093 075 061 050 040 033 027 577 442 340 263 205 160 125 099 078 062 049 039 032 025 021 239 183 ,140 ,108 084 065 051 040 031 025 020 016 555 417 315 20 456 312 215 149 104 073 051 037 026 019 014 010 007 005 004 308 174 099 057 033 020 012 007 004 003 002 001 001 208 097 046 022 011 005 003 001 00 Table IV Present Value of Series of $1 00 Cash Flows 1 1 1 (1 1 7 24 25 26 28 30 Period 4 6 8 10 12 14 16 18 22 0 962 0 943 0 926 0 909 0 893 0 877 0 862 0 847 0 833 0 820 0 806 0 800 0 794 0 781 0 769 1 833 1 783 1 736 1 690 1 647 1 605 1 566 1 528 1 492 1 457 1 440 1 424 1 392 1 361 1 886 2 775 2 673 2 577 2 487 2 402 2 322 2 246 2 174 2 106 2 042 1 981 1 952 1 923 1 868 1 816 3 630 3 465 3 312 3 170 3 037 2 914 2 798 2 690 2 589 2 494 4 2 404 2 362 2 320 2 241 2 166 4 452 4 212 3 993 3 791 3 605 3 433 1 3 127 2 991 2 864 2 745 2 689 2 635 2 532 2 436 5 242 4 917 4 623 4 355 4 111 3 889 3 685 3 498 3 326 3 167 3 020 2 951 2 885 2 759 2 643 B 002 5 582 5 206 4 868 4 564 4 288 4 039 3 812 3 605 3 416 3 242 3 161 3 083 2 937 2 802 6 210 5 335 4 968 4 639 4 344 4 078 3 619 3 421 3 329 3 241 3 076 2 925 Co 3 733 5 747 3 837 7 435 6 802 6 247 5 759 5 328 4 946 4 607 4 303 4 031 3 786 3 566 3 463 3 366 3 184 3 019 8 11 7 360 6 710 6 145 5 650 5 216 4 833 4 494 4 192 3 923 3 682 3 571 3 465 3 269 3 092 3 335 3 147 8,760 7 887 7 139 6 495 5 938 5 453 5 029 4 656 4 327 4 035 3 776 3 656 3 544 9 385 8 384 7 536 6 814 6 194 5 660 4 793 4 439 4 127 3 851 3 725 3 606 3 387 3 190 9 986 8 853 7 904 7 103 6 424 5 842 5 342 4 910 4 533 4 203 3 912 3 780 3 656 3 427 3 3 223 10 563 9 295 8 244 7 367 6 628 6 002 5 468 5 008 4 611 4 265 3 962 3 824 3 695 3 459 3 249 11 118 9 712 8 559 7 606 6 811 6 142 5 575 5 092 4 675 4 315 4 001 3 859 3 726 3 48 3 268 13 590 11 470 8 514 7 469 6 6 623 5 929 5 353 4 870 4 460 4 110 3 964 3 808 3 316 17 292 13 765 11 258 9 427 8 056 7 7 003 6 177 5 517 4 979 4 534 4 160 3 995 3 842 3 569 3 332 40 19 793 15 046 11 925 9 779 8 244 7 7 105 6 234 5 548 4 997 4 544 4 166 3 999 3 846 3 5713

Question

1  You plan to retire at age 40 after a highly successful but short career  You would like to accumulate enough money by age 40 to withdraw $241,000 per year for 40 years  You plan to pay into your account 15 equal installments beginning when you are 25 and ending when you are 39  Your account bears interest of 14 percent per year  UseAppendix Aattached for your reference  (Use appropriate factor(s) from the tables provided ) Required  a  How much do you need to accumulate in your account by the time you retire (Round your final answer to the nearest dollar amount ) b  How much do you need to pay into your account in each of the 15 equal installments (Round your final answer to 2 decimal places ) 2  Washington County's Board of Representatives is considering the construction of a longer runway at the county airport  Currently, the airport can handle only private aircraft and small commuter jets  A new, long runway would enable the airport to handle the midsize jets used on many domestic flights  Data pertinent to the board's decision appear below  Cost of acquiring additional land for runway$75,000 Cost of runway construction355,000 Cost of extending perimeter fence23,158 Cost of runway lights40,000 Annual cost of maintaining new runway20,000 Annual incremental revenue from landing fees45,000 In addition to the preceding data, two other facts are relevant to the decision  First, a longer runway will require a new snowplow, which will cost $155,000  The old snowplow could be sold now for $15,500  The new, larger plow will cost $13,000 more in annual operating costs  Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community  The board projects that the increased economic activity will result in $66,000 per year in additional tax revenue for the county  In analyzing the runway proposal, the board has decided to use a 10 year time horizon  The county's hurdle rate for capital projects is 6 percent  UseAppendix Afor your reference  (Use appropriate factor(s) from the tables provided ) Required  a  Compute the initial cost of the investment in the long runway  b Compute the annual net cost or benefit from the runway  c  Determine the IRR on the proposed long runway  (Round your answer to the nearest whole percent ) d  Should it be built considering IRR  e  In analyzing the runway proposal, the board has decided to use a 10 year time horizon  The county's hurdle rate for capital projects is 6 percent  The County Board of Representatives believes that if the county conducts a promotional effort costing $35,500 per year, the proposed long runway will result in substantially greater economic development than was projected originally  However, the board is uncertain about the actual increase in county tax revenue that will result  Required  Suppose the board builds the long runway and conducts the promotional campaign  What would the increase in the county's annual tax revenue need to be in order for the proposed runway's internal rate of return to equal the county's hurdle rate of 6 percent  (Round intermediate and final answer to the nearest dollar amount ) 3 The chief ranger of the state's Department of Natural Resources is considering a new plan for fighting forest fires in the state's forest lands  The current plan uses eight fire control stations, which are scattered throughout the interior of the state forest  Each station has a four person staff, whose annual compensation totals $390,000  Other costs of operating each base amount to $290,000 per year  The equipment at each base has a current salvage value of $310,000  The buildings at these interior stations have no other use  To demolish them would cost $29,000 each  The chief ranger is considering an alternative plan, which involves four fire control stations located on the perimeter of the state forest  Each station would require a six person staff, with annual compensation costs of $490,000  Other operating costs would be $300,000 per base  Building each perimeter station would cost $390,000  The perimeter bases would need helicopters and other equipment costing $690,000 per station  Half of the equipment from the interior stations could be used at the perimeter stations  Therefore, only half of the equipment at the interior stations would be sold if the perimeter stations were built  The state uses a 10 percent hurdle rate for all capital projects  The chief ranger has decided to use a 15 year time period for the analysis  UseAppendix Afor your reference  (Use appropriate factor(s) from the tables provided ) Required  3a  Use the incremental cost approach for a net present value analysis of the chief ranger's decision between the interior fire control plan and the perimeter fire control plan  (Round your  Discount factors  to 3 decimal places  Negative amounts should be indicated by a minus sign ) 4 Answer each of the following independent questions  Ignore personal income taxes  UseAppendix Afor your reference  (Use appropriate factor(s) from the tables provided ) Required  4a Suppose you invest $3,800 in an account bearing interest at the rate of 10 percent per year  What will be the future value of your investment in five years  4b Your best friend won the state lottery and has offered to give you $11,300 in four years, after he has made his first million dollars  You figure that if you had the money today, you could invest it at 8 percent annual interest  What is the present value of your friend's future gift  4c  In four years, you would like to buy a small cabin in the mountains  You estimate that the property will cost you $65,500 when you are ready to buy  How much money would you need to invest each year in an account bearing interest at the rate of 4 percent per year in order to accumulate the $65,500 purchase price  4d  You have estimated that your educational expenses over the next four years will be $14,300 per year  How much money do you need in your account now in order to withdraw the required amount each year  Your account bears interest at 6 percent per year  5 The supervisor of the county Department of Transportation (DOT) is considering the replacement of some machinery  This machinery has zero book value but its current market value is $820  One possible alternative is to invest in new machinery, which has a cost of $39,200  This new machinery would produce estimated annual operating cash savings of $12,600  The estimated useful life of the new machinery is four years  The DOT uses straight line depreciation  The new machinery has an estimated salvage value of $2,020 at the end of four years  The investment in the new machinery would require an additional investment in working capital of $3,000, which would be recovered after four years  If the DOT accepts this investment proposal, disposal of the old machinery and investment in the new equipment will take place on December 31, 20x1  The cash flows from the investment will occur during the calendar years 20x2 through 20x5  UseAppendix Afor your reference  (Use appropriate factor(s) from the tables provided ) Required  Makeepar anet present value analysis of the county DOT's machinery replacement decision  The county has a 10 percent hurdle rate including the acquisition cost  investment in working capital  recovery of working capital, salvage value of old machinery  salvage value of new machinery  annual operating cash savings  total cash flow  discount factor  present value, and net present value  (Round your  Discount factors  to 3 decimal places and final dollar amounts to whole dollars  Negative amounts should be indicated by a minus sign ) 6  The owner of Waco Waffle House is considering an expansion of the business  He has identified two alternatives, as follows  Build a new restaurant near the mall  Buy and renovate an old building downtown for the new restaurant  The projected cash flows from these two alternatives are shown below  The owner of the restaurant uses a 10 percent after tax discount rate  Investment Proposal Cash Outflow Time 0 Net After Tax (Years 1 10) Cash Inflows  Years 1 10(Years 11 20) Mall restaurant $619,000 $76,000 $76,000 Downtown restaurant 266,000 47,000     Includes after tax cash flows from all sources, including incremental revenue, incremental expenses, and depreciation tax shield  UseAppendix A for your reference  (Use appropriate factor(s) from the tables provided ) Required  6a  Compute the net present value of each alternative restaurant site  6b  Compute the profitability index for each alternative 6c  How do the two sites rank in terms of NPV and the profitability index  APPENDIX A   Future Value and Present Value Tables Table I Period 4  6  8  10  12  14  20  Future Value of $1 00(1   ) 1 040 1 060 1 080 1 100 1 120 1 140 1 200 1 082 1 124 1 166 1 210 1 254 1 300 1 440 1 125 1 191 1 260 1 331 1 405 1 482 1 728 1 170 1 263 1 361 1 464 1 574 1 689 2 074 1 217 1 338 1 469 1 611  762 1 925 2 488 1 265 1 419 1 587 1 772 1 974 2 195 2 986 1 31 1 504 1 714 1 949 2 211 2 502 3 583 1 36 1 594 1 851 2 144 2 476 2 853 4 300 1 423 1 690 1 999 2 359 2 773 3 252 5 160 1 480 1 791 2 159 2 594 3 106 3 707 6 192 1 540 1 898 2 332 2 853 3 479 4 226 7 430 1 601 2 012 2 518 3 139 3 896 4 818 8 916 1 665 2 133 2 720 3 452 4 364 5 492 10 690 1 732 2 261 2 937 3 798 4 887 6 261 12 83 1 801 2 397 3 172 4 177 5,474 7 138 15 407 2 191 3 207 4 661 6 728 9 646 13 74 38 338 3 24 5 744 10 063 17 450 29 960 50 950 37 380 10 4 801 10 286 21 725 45 260 93 051 188 880 1,469 800 Table II Period 4  6  8  10  12  14  20  Future Value of a Series of 1 000 1 000 1 000 1,000 1 000 1 000 1 000 $1 00 Cash Flows 2 060 2 080 2 100 2 120 2 140 2 220 (Ordinary Annuity) 2 040 (1   1)    1 3 12 3 184 3 246 3 31 3 374 3 440 3 640 4 247 4 375 1 506 4 641 4 779 4,921 5 368 5 416 5 637 5 867 6 105 6 353 6 610 7 442 3 633 6 975 7 336 7 716 8 115 8 536 9 930 7 898 3 394 8 923 9 487 10 089 10 730 2 916 9 214 9 898 10 637 1 436 2 300 13 233 16 499 10 583 11 491 12 488 13 58 14,776 16 085 20 799 10 12 006 13 181 14 487 15 938 17 549 19 337 25 959 13 486 14 972 16 646 18 531 20 655 23 045 32 150 15 026 16 870 18 977 21 385 24 133 27 271 39 580 13 16 627 18 882 21 49 24 523 28 029 32 089 48 497 18 292 21 015 24 215 27 976 32 393 37 581 59 19 20 024 23 276 27 152 31 773 37 280 43 842 72 035 20 29 778 36 778 45 762 57 276 75 052 91 025 186 690 56 085 79 058 113 283 164 496 241 330 356 790 1,181 900 95 026 154 762 259 057 442 597 767 090 1,342 000 7,343 900 Table III Present Value of $1 00 ( 1   1 )n Period 4  6 8  10  12  14  16  18  20  22  24  26  28  30  32  758 962 943 926 909 893 877 86  847 833 820  806 794 781 769 574 925 890 857 826 797 769 743 718 672 650 630 610 592 455 435 889 840 794 751  712 675 641 609 579 551 524 500 477 350 329 355 792 735 683 636 592 552 516 182 451 423 397 373 747 681 621 567 519 476 437 102 370  341  315  291 269  250 822 790 705 630 564  507 456 410  370 335  303  275  250 227 207  189 760 665 583 513 452 400 354  314 279 249 222 198  178 159 143 540 108 327  123 73 467 404 351 305  266 233 204 179 157  139 424 361 308  263  225 194  167  144  125  108 094 082  703 592 500 676 558 463  386  322 270  227 191 162 137 116  099  085 073 062  047 650 527 429 350  287  237 195 162  135 112  094  079 066  056 625 497 397  319  257  208  168  137  112  092 076 062 052  043  036  601 469 368 290  229  182  145  116  093  075 061 050  040  033  027 577 442 340 263 205 160 125 099 078 062 049 039 032  025 021 239 183 ,140 ,108  084 065 051 040 031  025 020  016 555 417 315 20 456 312 215 149 104  073 051 037 026 019  014 010 007 005  004 308 174 099 057 033  020 012  007 004 003  002 001  001 208 097 046 022 011 005  003 001 00 Table IV Present Value of Series of $1 00 Cash Flows 1  1 1 (1   1 7   24  25  26  28  30  Period 4  6  8  10  12  14  16  18  22  0 962 0 943 0 926 0 909 0 893 0 877 0 862 0 847 0 833 0 820 0 806 0 800 0 794 0 781 0 769 1 833 1 783 1 736 1 690 1 647 1 605 1 566 1 528 1 492 1 457 1 440 1 424 1 392 1 361 1 886 2 775 2 673 2 577 2 487 2 402 2 322 2 246 2 174 2 106 2 042 1 981 1 952 1 923 1 868 1 816 3 630 3 465 3 312 3 170 3 037 2 914 2 798 2 690 2 589 2 494 4 2 404 2 362 2 320 2 241 2 166 4 452 4 212 3 993 3 791 3 605 3 433 1 3 127 2 991 2 864 2 745 2 689 2 635 2 532 2 436 5 242 4 917 4 623 4 355 4 111 3 889 3 685 3 498 3 326 3 167 3 020 2 951 2 885 2 759 2 643 B 002 5 582 5 206 4 868 4 564 4 288 4 039 3 812 3 605 3 416 3 242 3 161 3 083 2 937 2 802 6 210 5 335 4 968 4 639 4 344 4 078 3 619 3 421 3 329 3 241 3 076 2 925 Co 3 733 5 747 3 837 7 435 6 802 6 247 5 759 5 328 4 946 4 607 4 303 4 031 3 786 3 566 3 463 3 366 3 184 3 019 8 11 7 360 6 710 6 145 5 650 5 216 4 833 4 494 4 192 3 923 3 682 3 571 3 465 3 269 3 092 3 335 3 147 8,760 7 887 7 139 6 495 5 938 5 453 5 029 4 656 4 327 4 035 3 776 3 656 3 544 9 385 8 384 7 536 6 814 6 194 5 660 4 793 4 439 4 127 3 851 3 725 3 606 3 387 3 190 9 986 8 853 7 904 7 103 6 424 5 842 5 342 4 910 4 533 4 203 3 912 3 780 3 656 3 427 3 3 223 10 563 9 295 8 244 7 367 6 628 6 002 5 468 5 008 4 611 4 265 3 962 3 824 3 695 3 459 3 249 11 118 9 712 8 559 7 606 6 811 6 142 5 575 5 092 4 675 4 315 4 001 3 859 3 726 3 48 3 268 13 590 11 470 8 514 7 469 6 6 623 5 929 5 353 4 870 4 460 4 110 3 964 3 808 3 316 17 292 13 765 11 258 9 427 8 056 7 7 003 6 177 5 517 4 979 4 534 4 160 3 995 3 842 3 569 3 332 40 19 793 15 046 11 925 9 779 8 244 7 7 105 6 234 5 548 4 997 4 544 4 166 3 999 3 846 3 5713

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1. You plan to retire at age 40 after a highly successful but short career. You would like to accumulate enough money by age 40

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