Suppose that you plan to invest 400,000 baths annually for 25 years for a retirement . Your investment return rate is 4 % . a ) What is your total retirement fund ? b ) If you plan to retire with a lump sum of 25 million baths , what should be your alternative investment's return ? c ) If you cannot find any alternative investments and have to stick with the investment yields of 4 % , how much do you have to invest annually ?
Suppose that you plan to invest 400,000 baths annually for 25 years for a retirement . Your investment return rate is 4 % . a ) What is your total retirement fund ? b ) If you plan to retire with a lump sum of 25 million baths , what should be your alternative investment's return ? c ) If you cannot find any alternative investments and have to stick with the investment yields of 4 % , how much do you have to invest annually ?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 10PB: Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce...
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Suppose that you plan to invest 400,000 baths annually for 25 years for a retirement . Your investment return rate is 4 % .
a ) What is your total retirement fund ?
b ) If you plan to retire with a lump sum of 25 million baths , what should be your alternative investment's return ?
c ) If you cannot find any alternative investments and have to stick with the investment yields of 4 % , how much do you have to invest annually ?
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