Corporate Finance - Question Answer

Running Head: CORPORATE FINANCE 1
CORPORATE FINANCE

Running Head: CORPORATE FINANCE
Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
Question 4........................................................................................................................................6
Part A...........................................................................................................................................6
Part B............................................................................................................................................6
Question 5........................................................................................................................................7
Part A...........................................................................................................................................7
Part B............................................................................................................................................7
Part C............................................................................................................................................7
References........................................................................................................................................9

Running Head: CORPORATE FINANCE
Question 1
Present value of goals at the time of retirement
PV of donation (3000000/(1+15%)^10
$741554.1184
Future value of house property at age 65 (7500000*(1+1%)^35)
$10624520.67
Less: Withdrawals $2250000
Total value $1287452.67
PMT $20367.89
The above value defines the amount which is required to be deposited by Lady Gaga, on
monthly basis to achieve her goals and desires until retirement. This means she has to input
$20367.89 on monthly basis to get what she wants, which also includes the amount of the
withdrawals for expenses of clothing and make up (Muda & Hasibuan, 2017).
Question 2
Years Job Offer 1
Discounting
factor Present value
1
$
80,000.00 0.893
$
71,428.57
2
$
80,000.00 0.797
$
63,775.51
3
$
80,000.00 0.712
$
56,942.42
4
$
80,000.00 0.636
$
50,841.45
5
$
80,000.00 0.567
$
45,394.15
6
$
80,000.00 0.507
$
40,530.49