Collins wishes to retire in 30 years’ time and has estimated that he will require a
monthly pension income of K24,000 per month for 20 years subsequent to retirement.
Collins will contribute to a retirement fund which will enable her to take out a monthly
pension of K24,000 after retirement. The retirement fund is currently earning a return of
9% per annum, interest compounded monthly, and this level is expected to remain
unchanged and to be sustainable over the next 50 years. Determine the monthly
contribution that collins is required to make to the retirement fund over the next 30 years.

Define or Explain two of the following four terms (from B&G) and explain how they affect one’s personal financial decision making:
sunk cost fallacy; endowment effect; anchoring; overconfidence.

If you were the risk manager for a company, how would you go about attempting to identify all of the risks facing a business? How would you decide which risks should be insured and which should not? (typing please,thank you)

An annuity can be defined as the difference between two perpetuities. calculate the present vale of an annuity that pays $2,500 per year for 10 years using a dicount rate of 6%. show how finding the difference between the two perpetuities produce the same answer as using the annuity formula.

What is the difference between RRSP and TFSA? Briefly describe how each one works. What is the advantage of RRSP over TFSA? What is the
advantage of TFSA over RRSP? What is the advantage of each(RRSP and TFSA) over a regular taxable investment account?

8. After spending $10,000 on client development, you have just been offered a big production contract by a new client. The contract will add $200,000 to your revenues for each of the next 5 years and it will cost you $100,000 per year to make the additional product. You will have to liquidate existing equipment and buy new equipment as well. The existing equipment is fully depreciated but could be sold for $50,000 now. You will buy new equipment valued at $30,000 and use the 5-year MACRS schedule to depreciate it. It will be worthless at the end of the project. Your current production manager earns $80,000 per year. Since she is busy with ongoing projects, you are planning to hire an assistant at $40,000 per year to help with the expansion. You will have to increase your inventory immediately from $20,000 to $30,000. It will return to $20,000 at the end of the project. Your company’s tax rate is 35% and your discount rate is 15%. What is the NPV of the contract? (Answer: $135,452.5) (Hints: The $10,000 on client development has already happened in the past and thus should NOT affect our replacement decision. Our replacement decision depends only on future expected incremental free cash flows resulting from the decision. The costs resulting from past decisions are called sunk costs and are irrelevant to current replacement decision. The salary of current production manager ($80,000) is also considered a sunk cost and is irrelevant information. Assume that we liquidate existing equipment and purchase new equipment in year 0 but put new equipment into work in year 1.)

What is the difference between a Market Index ETF and a Market Index Mutual Fund?

Is it better for a firm's actual stock price in the market to be under, over, or equal to its intrinsic value? Would your answer be the same from the standpoints of stockholders in general and a CEO who is about to exercise a million dollars in options and then retire? Explain.

Indicate whether the following instruments are examples of money market or capital market securities:

a. U.S. Treasury Bills

b. Long - Term corporate bonds

c. Common stocks

d. Preferred stocks

e. Dealer Commercial Paper

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 5%. The probability distribution of the risky funds is as follows:

Expected Return Standard Deviation

Stock Funds (S) 17% 38%

Bond Funds (B) 13 18

The correlation between the fund returns is 0.12. What is the Sharpe ratio of the best feasible CAL?

I have tried this multiple times and I can't get the right answer.

Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. Bensen gave Derek the following information. What is the NPV of the PJX5?

a. The PJX5 will cost $2.17 million fully installed and has a 10 year life. It will be depreciated to a book value of $158,814.00 and sold for that amount in year 10.

b. The Engineering Department spent $19,133.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $16,816.00.

d. The PJX5 will reduce operating costs by $402,119.00 per year.

e. CSD’s marginal tax rate is 27.00%.

f. CSD is 71.00% equity-financed.

g. CSD’s 11.00-year, semi-annual pay, 6.43% coupon bond sells for $992.00.

h. CSD’s stock currently has a market value of $21.08 and Mr. Bensen believes the market estimates that dividends will grow at 3.98% forever. Next year’s dividend is projected to be $1.60.

Thanks!

Brazil and Peru sell coffee in the U.S. for $10 per pound. The Brazilian Real falls from R$4:$1 to R$6:$1 while the Peruvian Sol stays at the same level of Sol 3:$1. It cost 20 R$ per pound to get the coffee to the store shelf. You are the head of Brazil Coffee Co. When the currency falls, your marketing chief tells you that if you lower the price to $8 per pound, you could sell 50% more pounds of coffee. Should you follow the advice from marketing? Assume your costs per pound do not change. Note: Brazil can pursue two strategies: Margin (make more money per pound) or Market Share (lower price to make same profit)

The question came from a book called Computers in the Medical Office (9th Edition)

illustrates the medical documentation and billing cycle. Some of the steps in the cycle, such as Step 2, Establish Financial Responsibility, focus more on billing activities. Explain how Step 4 includes a focus on both billing and clinical functions.