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show all work Thought - Objective 3 - Step 4 of SW Framework - Monitor and modify plan if necessary to achieve objective. Ten years

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Thought - Objective 3 - Step 4 of SW Framework - Monitor and modify plan if necessary to achieve objective. Ten years ago, Mark made the following investment in an SPDA: I=$12,000R=10%t0=25%tn=35%g=15% Now, he is considering two alternatives: (1) keep the SPDA for another 5 years; or, (2) cash in the SPDA and invest all of the after-tax proceeds in mutual fund for 5 years. Ignore transaction costs. Details are as follows: SPDAR=10%MutualfundR=9%t0=35%tn=35%g=15% (a) What advice would you give to Mark? You may use the TaxTools spreadsheet Unit_3.xls to aid you. However, you will need to unprotect the spreadsheet in order to have two different R's. To do this, click on the Review link at the top of the screen. Then, click on the Unprotect Sheet button. Now, you will be able to enter 10% as the SPDA R, and 9% as the mutual fund R. (b) On your own, keep increasing the holding period. What do you find? Explain your results

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