Question

In: Finance

A government has only 10,000 dollars to invest in open space. It can invest now or...

A government has only 10,000 dollars to invest in open space. It can invest now or wait five years and invest in the park after planning is finished. The planning cost was spent 5 years ago and cost 5,000 dollars. a. If the government waits to invest, how much money will it be able to spend in five years if the interest rate is 6%?

b. How much will it be able to spend in 5 years, with 10% interest rate?

c. How much will it be able to spend in 10 years, with 6% interest rate?

Solutions

Expert Solution


Related Solutions

Two brothers each open IRAs in 2015 and plan to invest $10,000 per year for the...
Two brothers each open IRAs in 2015 and plan to invest $10,000 per year for the next 25 years time makes his first deposit on January 1, 2015 I will make all future deposits on the first day of the year Michael. makes is the first deposit on December 31, 2015 and will continue to make us any deposits on the last day of each year at the end 25 years the difference in value of the IRA assuming an...
Joey has $10,000 to invest today and will invest an additional amount of $100 a month...
Joey has $10,000 to invest today and will invest an additional amount of $100 a month for the next 22 months. He expects his investment to earn a return of 7.2%, compounded monthly. How much will his investment be worth 2 years from now?
You invest $50,000 now and receive $10,000 per year for 15 years starting at the end...
You invest $50,000 now and receive $10,000 per year for 15 years starting at the end of the first year. What is the discounted payback period? Use i = 9% annual rate compounded annually. Give the discounted payback period between two consecutive integers.
1) You invest $50,000 now and receive $10,000 per year for 15 years starting at the...
1) You invest $50,000 now and receive $10,000 per year for 15 years starting at the end of the first year. What is the payback period in whole number years for this investment? In other words, in what year do you break even on this investment? Use i = 9% annual rate compounded annually, and use the discounted payback approach (not Simple Payback).
Show that a subset of R is open if an only if it can be expressed...
Show that a subset of R is open if an only if it can be expressed as a union of open intervals
Question 1 You currently have $7,500 to invest. You can invest the full amount now for...
Question 1 You currently have $7,500 to invest. You can invest the full amount now for a period of 9 years at which time you want to have $15,000. Approximately what rate of return is needed to accomplish this investment goal? 8.01% 7.59% 9.65% 8.50% Question 2 If four years of college tuition cost $15,000 in 1990, what did it cost in 1965 if tuition increased at 7% per year between 1965 and 1990? $2,764 $1,405 $3,876 $8,141 Question 3...
A. In the space below, place a pedigree chart that can only be interpreted as representing...
A. In the space below, place a pedigree chart that can only be interpreted as representing an autosomal dominant trait. Explain why this is so. (6 pts) You may use a written designation. For example I-1 (affected male X I-2 unaffected female                                                     II-1 (affected male II-2 (affected female)
department patient services revenue space (sq ft.) Housekeeping labor hours salary dollars General administration 10,000 2,000...
department patient services revenue space (sq ft.) Housekeeping labor hours salary dollars General administration 10,000 2,000 $1,500,000 Facilities 20,000 5,000 3,000,000 Financial Services 15,000 3,000 2,000,000 Total 45,000 10,000 $6,500,000 Routine Care $30,000,000 400,000 150,000 $12,000,000 Intensive Care $4,000,000 40,000 30,000 $5,000,000 Diagnostic Services $6,000,000 60,000 15,000 $6,000,000 Other Services $10,000,000 100,000 25,000 $7,000,000 Total $50,000,000 600,000 220,000 $30,000,000 Grand total $50,000,000 645,000 230,000 $36,500,000 6.3 Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost...
Mr. Lim has $10,000 to invest for a period of 5 years. He has a choice...
Mr. Lim has $10,000 to invest for a period of 5 years. He has a choice of either the bonds or stocks of the Oxley Company. (A) Bond: Oxley’s bond: Face value $1,000, 10% coupon paid annually and 8 years’ life remaining. The bond can be purchased at $1,100 today. B) Common Stock: Oxley’s common stock just paid a dividend $0.80. Its dividend will grow at 4% per year perpetually. The stock can be purchased at $8 today. (a) Calculate...
Due to inflation, future dollars can only buy less good and services then what can be...
Due to inflation, future dollars can only buy less good and services then what can be bought now. T/F?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT