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Assume a single period model and the existence of the capital market. Simonne Blake has a future income, at the end of this year, of

Assume a single period model and the existence of the capital market.

Simonne Blake has a future income, at the end of this year, of $ 1,650,000 and it is known that the maximum future consumption (before making any investment) that he could achieve, assuming that he does not consume anything today, is $ 3,362,750. If Blake invested 50% of her present income today in an investment project of which she expects to obtain a net future value of $ 610,000, she would calculate the amount of cash flow at the end of this year if the market rate is 12%.

Now suppose that the maximum future consumption without considering the project, at the end of this year, that Blake could reach (assuming that he did not consume anything today), was $ 3,900,000, and that the maximum present consumption (assuming that he will consume nothing tomorrow) would be exactly the same as you had at the beginning before making the investment (see previous problem), what market rate would this allow?

Finally, considering these assumptions (those mentioned above), if Blake wanted to consume $ 750,000 today, calculate what her future consumption will be, at the end of this year.

image text in transcribed

O $2.956,241.17 O $2.934.495.58 0 $2,925.797.34 O $2,938.844.70 O $2.951,892.05

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