Time Value of Money and Equivalent Annuity

Please do your own work and do not share your work with others. Please type a numerical solution in the space provided for each problem — thanks.
1. How much will you have at the end of 16 years if put $8680 per year at the end of each year into a saving account earning 1.8% annually? _________

2. How much do you need to invest today (once) to have $589,000 at the end of 18 years if you can earn 6.5% annually? ____________

3. Assume that you have accumulated $75,000 in student loan debt. You pick a 12-year horizon to pay of the loan. If the loan has a 6.75% annual rate, what will your monthly payments be? _________________

4. You plan to work for the next 37 years and earn 6.5% on your investments during your working years. In retirement, you expect to need $92,000 per year during each of your 25 years of retirement and (during this time) you expect to earn 4.6% on investments. How much do you need to invest at the end of each year (while working) to allow this to happen? _______________

5. A bond can be purchased for $965 today. This bond pays $62 in interest each year in annual year end payments. The bond has a par or maturity value of $1,000 and has 9 years to maturity. What is the expected yield to maturity for this bond? (Two decimal places please – for example 8.25%)_______________

6. A different bond pays 5.2% annual interest once per year, has 9 years to maturity, and a $1,000 par or maturity value. Given the risk level of this bond the market demands a 8.2% interest rate. What is the value of this bond today?_______________

7. Joe Inc.’s preferred stock is expected to pay a $2.27 dividend annually and is expected to do this forever. Joe Inc. is in a high risk business that requires an 8% return. What is the estimated value of Joe Inc.’s preferred stock?_______________

8. Bill Inc. common stock is expected to pay a $1.32 dividend at the end of the year and is in a risk class that requires an 8.5% required return. If this dividend is expected to grow forever at a 4.2% rate, what is the estimated value of Bill Inc.’s common stock? _______________

9. Joe’s Technology must choose between two repeatable methods of producing a new product. The initial costs and year-end cash benefits are as follows:
Year 0 1 2 3 4 5
Method M -$1,500,000 600,000 750,000 500,000 200,000
Method N -$2,500,000 1,200,000 900,000 700,000 400,000 300,000

Assume all cash flows occur at year-end and the company’s required return is 6.25 percent.
Please compute the net present value ______________ and the equivalent annuity ________________ for Method M
Please compute the net present value ______________ and the equivalent annuity ________________ for Method N

Which production method should be used? _______________

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with TheBestPaperWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business Studies
Excellent service - thank you!
Customer 452469, February 20th, 2023
Business Studies
Thank you!
Customer 452451, November 27th, 2022
The paper was EXCELLENT. Thank you
Customer 452449, September 23rd, 2022
Job well done and completed in a timely fashioned!
Customer 452451, November 18th, 2022
excellent loved the services
Customer 452443, September 23rd, 2022
Business Studies
Job well done. Finish paper faster than expected. Thank you!
Customer 452451, October 3rd, 2022
English 101
Very good job. I actually got an A
Customer 452443, September 25th, 2022
Excellent services will definitely come back
Customer 452441, September 23rd, 2022
Architecture, Building and Planning
The assignment was well written and the paper was delivered on time. I really enjoyed your services.
Customer 452441, September 23rd, 2022
Thanks a lot the paper was excellent
Customer 452453, October 26th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat