2.)Which TVM formula could you use to calculate the amount you will have at retirement if you...

Fantastic news! We've Found the answer you've been seeking!

Question:

Screen Shot 2023-11-09 at 12.27.32 AM.png

2.)Which TVM formula could you use to calculate the amount you will have at retirement if you save $5,000 each year during the 40 years you plan on working if the interest rate is 8%?

Group of answer choices

Uniform Series Present Value (USPV)

Uniform Series Compound Amount (USCA)

Single Payment Compound Amount (SPCA)

Fundamental Capitalization Formula

3.)A business is using a loan to finance 40% of the investment required for a project. The interest rate on the loan is 8%. The firm's required rate of return on equity is 25%. Their marginal tax rate is 25%. What is this firm's weighted average cost of capital (WACC)?

Group of answer choices

WACC is 17.40%

Not enough information is given

WACC is 14.80%

WACC is 13.60%

4.)Based on the cash flows provided in the table below, what is the Payback Period for this project?

Year	NATCF
0	-15,000
1	9,000
2	6,000
3	3,000
4	3,000
5	3,000

Group of answer choices

5 or more years

3 years

2 years

4 years

5.)After a successful career, you have decided to honor your favorite professor at the U of I by establishing an endowment in their name. Endowment funds earn an annual return of 5%. How large of an endowment would you need to provide so that the fund would generate annual income of $35,000 perpetually (forever)?

Group of answer choices

1,000,000

700,000

625,000

875,000