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PLEASE ANSWER NUMBER 2!!!!!!!! PROJECT 2 INFORMATION: TravelCorp is evaluating a new asset as an investment. The annual rate of return and probabilities associated with
PLEASE ANSWER NUMBER 2!!!!!!!!
PROJECT 2 INFORMATION: TravelCorp is evaluating a new asset as an investment. The annual rate of return and probabilities associated with this Asset are as follows: \begin{tabular}{cc} RATE OF RETURN & PROBABILITY \\ \hline 10% & 10% \\ 12% & 20% \\ 18% & 70% \end{tabular} PRIMARY POST QUESTIONS: (1&2) 1) For the potential investment: Calculate the following: Carry all values out 2 decimal places - ex. 3.45% a) EXPECTED RETURN = b) STANDARD DEVIATION = c) COEFFICIENT OF VARIATION = d) RANGE OF RETURNS =68% using the Empirical Rule Refer to PDF Handout 95% 99% 2) As part of a charitable program, TravelCorp wants to set up a trust to be used to fund grant proposals from the community for worthy causes. TravelCorp plans to fund this trust with an initial deposit of $500,000 today (assume it is 1/01/2020 ). At the end of each year, beginning 12/31/2020, Travel Corp plans to add an annual deposit of $50,000. The first payment from the trust will begin after the board has established the criteria/application for funding and had time to evaluate proposals received. The plan is to select one proposal each year, beginning on 12/31/2021, and award a payment of $75,000 on that date. You have been asked to prepare a report, showing the ending balance in the fund on 12/31/2020 - 12/31/2026. (Calculate the balance for each year end assuming the annual deposit \& the annual funding payment have been completed. Round all numbers to the appropriate whole number. Assume the expected return is 7% with annual compounding)Step by Step Solution
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