When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers om her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost abou $10. Based on actuarial tables, "Joltin' Joe could expect to live for 25 years after the actress died. Assume that the EAR is 9.4 percent. Also, assume that the price of the flowers will increase at 4 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks, and Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers om her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost abou $10. Based on actuarial tables, "Joltin' Joe could expect to live for 25 years after the actress died. Assume that the EAR is 9.4 percent. Also, assume that the price of the flowers will increase at 4 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks, and Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 37P

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When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $5. Based on actuarial tables, "Joltin' Joe" could expect to live for 31 years after the actress died. Assume that the EAR is 11.4 percent. Also, assume that the price of the flowers will increase at 4.6 percent per year, when expressed as an EAR. Assuming that each year has exactly 52 weeks, what is the present value of this commitment? Joe began purchasing flowers the week after Marilyn died.
When Marilyn Monroe died, ex - husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $8. Based on actuarial tables, "Joltin' Joe" could expect to live for 15 years after the actress died. Assume that the EAR is 8.3 percent. Also, assume that the price of the flowers will increase at 3.5 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks and Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $5. Based on actuarial tables, “Joltin’ Joe” could expect to live for 20 years after the actress died. Assume that the EAR is 9 percent. Also, assume that the price of the flowers will increase at 3.4 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks and Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment?
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