Mark, 25, plans to put $6,500 per year in his RRSP until age 65. He plans to invest the money in an index fund that is expected to earn a rate of return of 8% per year. When he retires at 65, he will withdraw the money in one lump sum, and pay taxes at the rate of 45%. His friend recommends that he should put his money in a TFSA, invest in the same index fund, and will end up with more money at 65. His marginal tax rate before retirement is 30% throughout.

Answer:

1. How much money will he have at 65, after taxes, if he invests in the RRSP?
2. How much money will he have after taxes if he invests in the TFSA?

Can you give me each step of this problem?

A researcher would like to evaluate the effectiveness of a pain-relief patch designed for lower back pain. Prior to testing the patch, each of n = 8 patients rates the current level of back pain on a scale from 1 to 10. After wearing the patch for 90 minutes, a second pain rating is recorded. The data are as follows:

                  Before      After

                        6            2

                        8            3

                        9            4

                        8            1

                      10           2

                        5            3

                        9            8

                        7            7

• Compute the mean and variance for the sample of difference scores.
• Do the results indicate a significant difference?
• Use a two-tailed test with α = .05
• Compute Cohen’s d to measure the size of the effect.

You have plans to visit Africa in a safari after retirement. The whole safari cost today is $40,000, but inflation rate is expected to be 2%. You age to retire is 55 years and you are 36 years old. 3 years ago, you started savings, depositing 5,000 in a savings account that pay 4%. Also, you planned to deposit all your next Christmas bonuses ($1,500) in a money market accounts that pay 6%. Unfortunately, 4 years before retirement health issues required you to withdraw $4,000 from your savings account.

How much funds do you have for the safari immediately after retirement?

Is that amount enough to cover the safari costs? Show computations

You are a consultant to a large manufacturing corporation considering a project with the following net after-tax cash flows (in millions of dollars): Years from Now After-Tax CF 0 –36 1–9 12 10 24 The project's beta is 1.5. Assuming rf = 4% and E(rM) = 12% a. What is the net present value of the project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) Net present value 24.72 million b. What is the highest possible beta estimate for the project before its NPV becomes negative? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Highest possible beta value

Walther Corporation is deciding between purchasing needed equipment or leasing it. If purchased, it has calculated its total expected after-tax cash outflows each year as follows: Year 1 $250,000; Year 2 $225,000; Year 3 $200,000; Year 4 $150,000; and Year 5 $100,000 with annual cash flows assumed to be generated evenly throughout the year (use the mid-year adjustment). If leased, the annual after-tax lease payment of $187,500 would be due at the beginning of each of the next five years. The company’s cost of debt is 5%. What is the net advantage to leasing (NAL)? If leasing is more expensive, be certain to place a negative sign before your answer. show work in excel!

13. A researcher assesses 7 students on test anxiety using blood pressure as a measure (the higher the blood pressure, the greater the anxiety); she then assesses the same subjects again after they view a 2-hour videotape on "relaxation techniques under stress". The results, average systolic blood pressure, were:

Subject Before After

1 120 110

2 160 110

3 124 100

4 135 99

5 170 115

6 143 106

7 188 89   

   1. State the independent and dependent variables.
   2. State the Null Hypothesis in words and symbols.
   3. Compute the appropriate statistic.
   4. What is the decision? reject
   5. State the full conclusion in words.

A contractor is considering whether to buy or lease a new machine for her layout site work. Buying a new machine will cost $12,000 with a salvage value of $1200 after the machine's useful life of 8 years. On the other hand, leasing requires an annual lease payment of $3000, which occurs at the state of each year. The MARR is 15%. On the basis of an internal rate of return analysis, which alternative sgould the contractor be advised to accept.

Note: Please use the details below: (regard the given in the problem)

Part A: – Do the lease-buy analysis before tax.

Part B – Do the analysis after tax. Use a tax rate of 22.98%,

and MACRS 7-year depreciation schedule.

Use of Excel is encouraged

In an effort to increase production of an automobile part, the factory manager decides to play music in the manufacturing area. Eight workers are selected, and the number of items each produced for a specific day is recorded. After one week of music, the same workers are monitored again. The data are given in the table below.

Can the manager conclude that the music has changed the production level?

Perform the appropriate hypothesis test with a significance level of 0.05.

Do your work in an Excel file. Make Excel do the test statistic calculation.!!!!!!!!!!!

Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten’s only source of income. Ignoring any employment tax considerations, compute Kirsten’s after-tax income if:

a. Purple Company is a proprietorship and Kirsten withdraws $50,000 from the business during the year; Kirsten claims a $40,000 deduction for qualified business income ($200,000 x 20%).

b. Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten.

c. Purple Company is a C corporation and the corporation pays Kirsten a salary of $158,000.