28) You have come up with a forecast of your future earnings. You believe you will...

28) You have come up with a forecast of your future earnings. You believe you will earn:

$20,000 next year (one-year from now);
$40,000 two years from now;
$60,000 three years from now; and,
$100,000 four years from now and every year there-after for another 29 years (30 such years in total)

Assume your earnings in all of these years are received as one lump-sum payment at the end of every year. Assume your personal discount rate is 8%.

What is the present value of your estimated future income?

* I need to be able to show my work, the steps to understand the question.

Solutions

Expert Solution

SOLUTION:-

SOLVED WITH FINANCIAL FORMULAS OF PVIF AND PVIFA

jeff jeffy answered 2 hours ago

Next > < Previous

Related Solutions

Project Year Earnings Forecast ($000,000s) 1 2 . . . 9 10 Sales revenue 28 28...

Project Year Earnings Forecast ($000,000s) 1 2 . . . 9 10 Sales revenue 28 28 28 28 - Cost of goods sold 16.8 16.8 16.8 16.8 Error: Error evaluating expression: Gross profit 11.2 11.2 11.2 11.2 - Selling, general, and administrative expenses 1.2 1.2 1.2 1.2 - Depreciation 1.5 1.5 1.5 1.5 Error: Error evaluating expression: Net operating income 8.5 8.5 8.5 8.5 - Income tax 1.7 1.7 1.7 1.7 Error: Error evaluating expression: Net unlevered income 6.8 6.8...

1. You have been mandated to come up with an IT Governance Strategy Document for your...

1. You have been mandated to come up with an IT Governance Strategy Document for your organization. Detail how you would use 3 IT Governance Frameworks to come up with your IT Governance Strategy, tailor made for your organization. Please provide your answer in the form of a simplified project document.

Which industries do you believe have the best profit prospects based on your projection of earnings...

Which industries do you believe have the best profit prospects based on your projection of earnings growth? Which firms in these industries have the best prospects based on your projection of earnings growth? Among those industries with the best prospects based on your projection of earnings growth, do these industries appear to be good investments in light of their P/E ratios? Among those firms with the best prospects based on your projection of earnings growth, do these firms appear to...

Looking into the future, describe one future technology and how you believe programming languages will have...

Looking into the future, describe one future technology and how you believe programming languages will have to adapt to make that technology successful

How do you believe pharmaceutical knowledge will benefit your future career?

Please submit a 500 word + paper discussing the following question:How do you believe pharmaceutical knowledge will benefit your future career? Give examples of things you could touch up on include how it could be applied to your profession and how could it impact patient outcomes (among many others. Career: Sonographer

A) Suppose you had a large number of variables which you believe might have some forecast...

A) Suppose you had a large number of variables which you believe might have some forecast information. How would you use these variables to forecast in an efficient way? B) How would you extend this procedure to allow for dynamic effects?

A) Suppose you had a large number of variables which you believe might have some forecast...

You are the manager in a health care organization, and you have been directed to come up with a plan to cut your budget by 5%

HEALTHCARE FINANCESYou are the manager in a health care organization, and you have been directed to come up with a plan to cut your budget by 5%. Discuss the following:What expenses will you cut? Justify the cuts you choose.Describe how these cuts will affect patient-centered care.Include both positive and negative effects.

For this project you need to come up with five what-ifs. You should use your own house if you have one.

For this project you need to come up with five what-ifs. You should use your own house if you have one. For instance you buy a $500,000 house, put 25% down and finance the rest at 5.5% for 30 years. Now suppose that after 15 years you decide to refinance at 4.7% for 30 years. How much would you save? Now jump to the bottom line and figure how much you save. Is there any ah hah moments? What if...

Do you believe that investing your surplus personal resources is risking your future, so you prefer...

Do you believe that investing your surplus personal resources is risking your future, so you prefer to entrust your savings to a bank through checking, savings or CDT’s accounts? Explain your answer based on financial arguments. Don't just make personal opinions without a theoretical basis.

Subjects