Ch5ClassProblems6th

Ch5ClassProblems6th - subscription a better deal Payments...

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BMGT 340 Additional Problems m Your subscription to Jogger's World Monthly is about to expire and you can renew by sending in \$1 Olyear at the regular rate or getting a lifetime subscription for \$1 00. Your cost of capital is 7%. How many years would you have to live to make the lifetime subscription a better deal? Payments are made at the beginning of the year. .

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BMGT 340 Additional Problems Your sithscription to Jogger's World Monthly is about to expire and you can rcncw by sending in \$10/year at thc regular ratc or getting a lil'ctimc subscription for \$100. Your cost of capital is 7%. How many years would you have to live lo make thk lifetime
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Unformatted text preview: subscription a better deal? Payments are made at the beginning of the year. . 6 800 1 I What is the ca!h flow at thc end of the 4"' year'? John invested \$2,566.70 in a project that returns 12%/year. The cash flows cxpcctcd arc: End of year 1 2 3 4 5 Cash flow \$325 400 550 ? 750 • You deposit \$50 in an account that pays 5 /0 interest, compounded daily (360 days/year). How much will you have in 5 months? Assume all months have 30 days. S 5<Ob ~ D.6{31 ~x. 3D J 5 0 w --r-::: -5c 70 -O. 01 3} {~-f Y"\.T == 0 '7 4 ~ I. D5-r::v --=7...
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This note was uploaded on 03/02/2011 for the course BMGT 340 taught by Professor White during the Spring '08 term at Maryland.

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Ch5ClassProblems6th - subscription a better deal Payments...

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