What is the purpose of a decommissioning fund (“sinking”
fund)? And, why does a lump sum...
What is the purpose of a decommissioning fund (“sinking”
fund)? And, why does a lump sum up front make more sense than
deducting a certain interest over the expected duration of
service?
A lump-sum election allows a taxpayer to: Elect ten-year averaging on the lump-sum payment. Evenly allocate the lump-sum benefit over the current year and the prior years. Include the social security benefits received for prior years in current-year benefits. Treat a lump-sum social security benefit as if the benefits for prior years had been received in
Which of the following statements about sinking fund is
true?
Sinking fund provision facilitates the orderly retirement of the
bond issue.
Sinking funds are designed to protect bondholders, so it never
hurts the bondholders in any situations.
A company would use sinking fund for open market purchase of
bond if interest rate is below coupon rate.
A company would prefer to use sinking fund to call bond if
interest rate is above coupon rate.
Which of following statements is not...
Regarding TVM:
What are three solution techniques for solving lump sum
compounding problems?
How does the future value of a lump sum change as the time is
extended and as the interest rate changes?
Why does an investment have an opportunity cost rate even when
the funds employed have not explicit cost? How are opportunity
costs established?
A Asset Valuation = Price B Wealth Accumulation C Funding – Lump
sum funds lump sum D Funding – Lump sum funds ordinary level
annuity E Funding – Lump sum funds delayed level annuity F Funding
– Ordinary level annuity funds lump sum G Funding – Ordinary level
annuity funds delayed level annuity H Choosing Among Alternatives
Classify the problem as one of the above types. Choose Only One You
are managing a trust fund that must pay its owner...
A Asset Valuation = Price B Wealth Accumulation C Funding – Lump
sum funds lump sum D Funding – Lump sum funds ordinary level
annuity E Funding – Lump sum funds delayed level annuity F Funding
– Ordinary level annuity funds lump sum G Funding – Ordinary level
annuity funds delayed level annuity H Choosing Among Alternatives
Classify the problem as one of the above types. Choose Only One You
receive $4,122 today and in one year. If you invest...
A Asset Valuation = Price B Wealth Accumulation C Funding – Lump
sum funds lump sum D Funding – Lump sum funds ordinary level
annuity E Funding – Lump sum funds delayed level annuity F Funding
– Ordinary level annuity funds lump sum G Funding – Ordinary level
annuity funds delayed level annuity H Choosing Among Alternatives
Classify the problem as one of the above types. Choose Only One You
are thinking about buying a business that you expect will...
A Asset Valuation = Price B Wealth Accumulation C Funding – Lump
sum funds lump sum D Funding – Lump sum funds ordinary level
annuity E Funding – Lump sum funds delayed level annuity F Funding
– Ordinary level annuity funds lump sum G Funding – Ordinary level
annuity funds delayed level annuity H Choosing Among Alternatives
Classify the problem as one of the above types. Choose Only One You
have purchased solar panels for your house and they will...
A Asset Valuation = Price
B Wealth Accumulation
C Funding – Lump sum funds lump sum
D Funding – Lump sum funds ordinary level annuity
E Funding – Lump sum funds delayed level annuity
F Funding – Ordinary level annuity funds lump sum
G Funding – Ordinary level annuity funds delayed level
annuity
H Choosing Among Alternatives
Classify the problem as one of the above types. Choose
Only One
You need $15,000 in 12 months to pay for your property...
A Asset Valuation = Price B Wealth Accumulation C Funding – Lump
sum funds lump sum D Funding – Lump sum funds ordinary level
annuity E Funding – Lump sum funds delayed level annuity F Funding
– Ordinary level annuity funds lump sum G Funding – Ordinary level
annuity funds delayed level annuity H Choosing Among Alternatives
Classify the problem as one of the above types. Choose Only One You
need $4,526 in 6 months for your property tax bill....