Question

In: Accounting

In MatLab, using linprog: 3.8.Paul has 2200 per year to invest over the next five years....

In MatLab, using linprog:

3.8.Paul has 2200 per year to invest over the next five years. At the beginning of each year he can invest in one–, two–, and three–year deposits at interest rates of 8%, 17% (total) and 27% (total), respectively. If Paul reinvests his money available each year, how much should he invest in each of the three deposits each year so that his total cash at the end of the five years is a maximum?

Solutions

Expert Solution


Related Solutions

If you invest $1000 a year at the beginning of each year for the next twenty-five years in a broadly-based stock market fund which historically has earned 7% per year
If you invest $1000 a year at the beginning of each year for the next twenty-five years in a broadly-based stock market fund which historically has earned 7% per year, how much will you expect have at the end of these 25 years if you believe stock market history is an excellent guide to the future PLEASE USE EXCEL TO CALCULATE ?
Earnings per common share of ABC Industries for the next year are expected to be $2.25 and to grow 7.5% per year over the next 4 years.
Earnings per common share of ABC Industries for the next year are expected to be $2.25 and to grow 7.5% per year over the next 4 years. At the end of the 5 years, earnings growth rate is expected to fall to 6.25% and continue at that rate for the foreseeable future. ABC’s dividend payout ratio is 40%. If the expected return on ABC's common shares is 18.5%, calculate the current share price. (Round your answer to the nearest cent.)Current...
I have 8 million at 9% per annum payable over next five years . The tax...
I have 8 million at 9% per annum payable over next five years . The tax rate is 28%. How do I determine the value of the tax shield? I am doing corporate finance/Finance for decision makers
A company plans to invest in a new manufacturing project over the next 12 years. The...
A company plans to invest in a new manufacturing project over the next 12 years. The project will require an initial investment of $65,000, and an additional investment of $26,000 in Year 5. Starting in Year 2, the company will reduce their labour costs by $14,500 a year for the next 5 years, and $9000 a year for the next 4 years. At the end of the project, there will be a residual value of $24,000. If the company’s cost...
You have an opportunity to invest in an investment plan for the next 45 years. This plan will offer compound interest of 8 percent per year for the next 20 years and 11 percent per year for the last 25 years.
  a) You have an opportunity to invest in an investment plan for the next 45 years. This plan will offer compound interest of 8 percent per year for the next 20 years and 11 percent per year for the last 25 years. If you invest $8,000 in this plan today, how much will you accumulate at the end of the 45 years? Choose the correct answer: $505,539.84 $501,516.38 $506,570.12 $509,092.54 $592,394.59 b) Your rich uncle will give you a...
1. One-year interest rate over the next five years are expected to be 15%, 16%, 17%,...
1. One-year interest rate over the next five years are expected to be 15%, 16%, 17%, 18% and 19%. Required: i. Determine the interest rate on one to five-year bonds today.          ii.   investors have preference for holding short-term bonds so their liquidity premium for holding one-to five-year bonds are 0%, 0.25%, 0.50%, 0.75% and 1%. Determine the interest rate on one to five-year bonds today.   2. Determine the fractional-reserve lending cycle (5 times) with an 11% reserve ratio using initial...
you plan to invest $10,000 on the last day of every year for the next five...
you plan to invest $10,000 on the last day of every year for the next five years, if the interest rate on the investment is 6 percent, the present value of your investment is...
You plan to invest $1,000 on the last day of every year for the next five...
You plan to invest $1,000 on the last day of every year for the next five years, if the interest rate on the investment is 6 percent, the present value of your investment is....
Ted Corporation expects to generate free-cash flows of $200,000 per year for the next five years....
Ted Corporation expects to generate free-cash flows of $200,000 per year for the next five years. Beyond that time, free cash flows are expected to grow at a constant rate of 4 percent per year forever. If the firm's weighted average cost of capital is 15 percent, the market value of the firm's debt is $500,000, and Ted has a half million shares of stock outstanding, what is the value of Ted stock? Select one: a. $1.32 b. $1.79 c....
ABC Inc. needs 150,000 boxes of parts per year over the next four years, and you...
ABC Inc. needs 150,000 boxes of parts per year over the next four years, and you are deciding on a bid for the contract. The capital equipment will cost $950,000 to install, which will be depreciated straight-line to zero over the life of the project. The equipment can be sold for $250,000 in four years. The equipment will be installed on land the company already owns. The land can be sold for $750,000 after-tax today. The land is expected to...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT