FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Your friend has asked you to help him with a capital needs analysis. You calculated that total cash available will be $540,000, your friend’s estate’s obligation will be $130,400, net monthly income required for your friend’s survivor is estimated to be $1,900 per month. Using a 5% discount rate, what would be the amount of total additional capital needed?
Select one:
a.none of the choice is correct =1900*12/0.05 = 456,000+130,000-540,000 = 46,000
b.$46,400
c.$37,160
d.$36,400
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