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Seahawk Enterprises has an estimated pension liability of $1.5 million due in 15 years. The company can earn 8 percent per year on its pension savings. How much must the company pay into the pension fund each year to be able to pay the $1.5 million liability when it comes due, if it makes the first payment in one year (ordinary annuity)? Seahawk Enterprises has an estimated pension liability of $1.5 million due in 15 years. The company can earn 8 percent per year on its pension savings. How much must the company pay into the pension fund each year to be able to pay the $1.5 million liability when it comes due, if it makes the first payment today (annuity due)? If you deposit $1,000 per month at 0.75 percent per month (first deposit occurring today), what will it be worth in 15 years? a. b. c. Please watch this video on TVM using BAIlPlus Part 2 (7:45): Given the following cash flows and a compound growth rate of 9 percent: Year: Cash Flow (S): a. What is the present value of this stream of uneven cash flows? b.What is the future value of this stream of uneven cash flows? c. What amount per year could you substitute as an annuity that would be equal to this 2 4 50 60 60 7575 75 90 stream of uneven cash flows using the same 9 percent? Pages: 1 of 2 Words:490 of 490 4 F 00 F FS F6
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