Question
PLEASE ANSWER WITHIN THE HOUR: Make sure the calculator is set up where you can see the answer 9 places after the decimal (example: 5.674567889)
PLEASE ANSWER WITHIN THE HOUR: Make sure the calculator is set up where you can see the answer 9 places after the decimal (example: 5.674567889)
17. Star Products Company has purchased a piece of equipment costing $200,000. It is expected to generate a ten year stream of cash flows amounting to $23,273 per year. Determine the rate of return they expect to earn from this purchase.
21.)You are 40 years old today and want to plan for retirement at age 65. You want to set aside an equal amount every year from now to retirement. You expect to live to age 95 and want to withdraw a fixed amount each year during retirement that at age 65 will have the same purchasing power as $70,000 has today. You plan on withdrawing the money starting the day you retire. You have $15,000 saved for retirement today. Inflation is assumed to be 3.0% in the future. You expect to earn an 8% return on your investments in the future. How much do you need to save each year until retirement to meet your goal?
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