Jack is a very successful manager. He has a management contract which grants him a lump sum payment of $20 million be paid upon the completion of his first fifteen years of service. The company wants to set aside an equal amount of funds at the end of each year to cover this anticipated cash outflow for Jack's compensation. The company can earn 4 percent per year on these funds. How much must the company set aside each year for this purpose? Select one alternative: O $572,888.43 $998,822.01 O $133,333.33

Jack is a very successful manager. He has a management contract which grants him a lump sum payment of $20 million be paid upon the completion of his first fifteen years of service. The company wants to set aside an equal amount of funds at the end of each year to cover this anticipated cash outflow for Jack's compensation. The company can earn 4 percent per year on these funds. How much must the company set aside each year for this purpose? Select one alternative: O $572,888.43 $998,822.01 O $133,333.33

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Suppose a media planner had a budget of $5,000,000 and the cost per thousand exposures was $10. The planner wanted a frequency of 20. The planner could attain a reach of:
Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. 1 2 3 4 5 76 79 82 82 55 Year Forecast demand Currently the manufacturer has eight machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 25 minutes to produce. a. What is the effective capacity of the factory? Round your answer down to the nearest whole number. units/year b. Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity. Round your answers to the nearest whole number. Year Extra capacity needed (units) c. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. Year Additional machines needed 1 1 2 2 3 3 4…
Davy Johnson is CFO for a newly formed manufacturing company. Below is the anticipated monthly production for the first six months of operation. Davy is interested in learning which of the first six months will require cash outlays of more than $40,000 toward the purchase of materials. Each unit requires 5 pounds of material at $10 per pound. All material is purchased in the month prior to its expected use. Purchases are paid for 10% in the month of purchase, 40% in the month following the month of purchase, and 50% in the second month following the month of purchase. Compute the total amount paid for March.
solve within 30 mins.
At the end of the month, approximately what percentage complete will those gummy bears be with respect to direct materials?
A cell-phone repair shop consists of three processes. Step 1 requires 6 minutes per unit, step 2 requires 5 minutes per unit and step 3 requires 7 minutes per unit. 30% of units that complete the third step require rework, which means those units must start the process over at step 2 (processing times are the same for units being reworked) and rework is always successful. Demand at the shop is 0.5 units per minute. Instruction: Round your answer to three decimal places. What is the capacity of the shop (in units per units per minute)? units per minute
Last year, the Boston warehouse actual annual cost (12 months) totaled $113000, with the first 5 months' costs at $30000.The actual cost of operation totaled $35000 this year at the end of month 5. Compute the projected total costs for the current year (at the end of month 12). Round your answer to the nearest dollar, if applicable. Please provide only typed answer solution no handwritten solution needed allowed... Please do it neat and clean correctly please...
Below is a project WBS with cost apportioned by percent. If the total project cost is estimated to be $650,000, what are the estimated costs for the following deliverables? (Round the final answers to the nearest dollar.) Definition 10% Router systems project $650,000 Implementation 47% Objectives Requirements Inputs Outputs Files Interfaces Programming In-house testing Customer testing and review 3% 7% 3% 4% 5% 9% 22% 38% 9% a. Design? b. Programming? C. In-house testing? Design 43%
Assuming a mark-up of 13.54% and that your payment will be received 60 days after the start of the project, what is the cumulative total at the 5th month? Month 1 2 13 14 5 16 7 18 Total Planned Monthly Costs $13,110.84 $14,261.79 $36,314.98 $57.441.75 $27.141.85 $21,763.22 SO $O Planned Monthly Revenue $ Cumulative Costs Cumulative Revenue Cumulative Total
During the next four months, a customer requires,respectively, 600, 800, 1200, and 900 units of acommodity, and no backlogging is allowed (that is,the customer’s requirements must be met on time).Production costs are $80, $100, $105, and $90 per unitduring these months. The storage cost from one month to the next is $20 per unit (assessed on ending inven-tory). It is estimated that each unit on hand at the end of month 4 can be sold for $60. Assume there is nobeginning inventory.a. Determine how to minimize the net cost incurred inmeeting the demands for the next four months.b. Use SolverTable to see what happens to the decisionvariables and the total cost when the initial inventoryvaries from 0 to 1000 in 100-unit increments. Howmuch lower would the total cost be if the companystarted with 100 units in inventory, rather than none?Would this same cost decrease occur for every100-unit increase in initial inventory?
The creative designer at your company has promised to reduce all design faults by one third over the entire shift cycle from 0800 to 0800. If this initiative is successful, what would be the total number of design faults over the same period of time?

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS