Tom's best friend, Joe, works for a company that was just acquired. He lost his job. Joe was given a severance payment of $365,000, which he invested at a 7.5% annual rate. He now plans to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. How many years will it take to exhaust his funds, i.c., run the account down to zero? 

 

Tom's accountant guesstimates sales growth to be 5%. How long would it take sales to double?

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Tom's accountant suggests that Tom will earn the following cash flow stream from a mutual fund investment over the next 4 years. What is the present value of the following cash flow stream at a rate of 12.0012 Years 0 $0 2 3 1 $75 $225 $0 $300 Tom's accountant suggests that Tom will earn the following cash flow stream from a mutual fund investment over the next 4 years. What is the present value of the following cash flow stream at a rate of 12.0012 Years 0 $0 2 3 1 $75 $225 $0 $300

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