Fill Calibri (Body) 11 A. A abc wrap Text Currency C31 i Time Value of Money David plans to retire at age 62 (which is in 40 years), David likes to fish and upon retirement he plans to buy a cabin in the mountains which he estimates will cost him $200,000. He also estimates that to live comfortably in retirement, he need to withdrawi $90,000 at the start of each year, which he believes he will need until age 85 (ie. 23 years of withdrawis). When he retires, he plans to purchase the cabin, then ace the remaining balance into an account that pays 4 percent interest. indicated above? will David need at retirement (at age 65) in order to have enough money to buy the cabin and make the annual withdrawls 2. irDavid's first payment is made at the end of this year, and his last payment is made the day he retires, how much money must he contribute each year to his retirement fund, the fund pays 7.5% interest until retirement? 3. David is able to save $10,000 a year, what interest will he have to earn over the next 40 years to produce the same amount he needs to fund his retirement? 13 14 4. Part A David's rich uncle gave him $75.000 today and he invested it a fund that pays 7.5% interest would it be enough to fund his in retirement? Part B if $75 000 is not enough, what amount would be needed? Amount Needed at Retirement Part 1 S2070 000.00 Amount Needed at Retirement 26 27 Part 2 $57,057.70 3,076.92 28 31 Part 3 TVM proj Cash Flows WACC-Div Crowth WACC-CAPM LLeverage Problem Fin Forecasting