Florida Sale Away Corporation Northeastern Division has sales of $525,000 in the year 2001

Florida Sale Away Corporation Northeastern Division has sales of $525,000 in the year 2001. By 2012, sales had increased to $1,200,000. The Vice President of Marketing has requested that you calculate for her what the average annual rate of increase is on sales for the Northeastern Division.

Click here for the SOLUTION

Tim, one of the long term employees at Florida Sale Away Corporation, meets with you to discuss his company retirement account

Tim, one of the long term employees at Florida Sale Away Corporation, meets with you to discuss his company retirement account. He has paid $250 per month into a 401K retirement plan. After 30 years, his plan has accumulated $500,000. He requests that you calculate for him his average annual rate of interest earned over the 30 years of participation in this plan?

Click here for the SOLUTION

Florida Sale Away Corporation is considering the purchase of a small warehouse at a cost of $300,000

Florida Sale Away Corporation is considering the purchase of a small warehouse at a cost of $300,000. The firm plans to apply $60,000 as a down payment on the warehouse and borrow $240,000 from the bank to complete the purchase. The Chief Financial Officer asks you to determine how much will each monthly payment be on the debt assuming an interest rate of 5% assuming equal monthly payments for 30 years?

Click here for the SOLUTION

An intern working at Florida Sale Away Corporation asked you to join him for lunch to discuss an inheritance of $5,000 that he recently received

An intern working at Florida Sale Away Corporation asked you to join him for lunch to discuss an inheritance of $5,000 that he recently received. He wondered if he deposited the $5,000 in a savings account that pays 8% interest per annum, how long would it take him to double his savings. Please help him out with your answer and explanation.

Click here for the SOLUTION

The CEO of Florida Sale Away Corporation has decided, with the agreement of the Board of Directors, to buy an annuity for each of the corporate officers

The CEO of Florida Sale Away Corporation has decided, with the agreement of the Board of Directors, to buy an annuity for each of the corporate officers. He is considering the purchase of several twenty year ordinary annuities, each of which will be worth $30,000 at the end of the 20 years. He asked your boss what the present value of one of these annuities would be worth. Your boss, the Chief Financial Officer of the firm, asked you to calculate the present value of one of these 20 year ordinary annuities of $30,000 using an estimated 6% discount rate and email her your answer and an explanation of your findings.

Click here for the SOLUTION

Your boss at Florida Sale Away Corporation has another investment project for you to complete

Your boss at Florida Sale Away Corporation has another investment project for you to complete. Our firm will receive a legal settlement on a patent issue in three years from now for $10,000. She asks you to calculate what this settlement is worth to the firm today if the discount rate is 7%.

Click here for the SOLUTION

You are the assistant Financial Manager for the Florida Sale Away Corporation

You are the assistant Financial Manager for the Florida Sale Away Corporation. The Chief Financial Officer ask to you invest $15,000 of excess cash funds in an annuity which will return $26,300 dollars at the end of nine years. Or, as an alternative, consider investing the $15,000 in a FDIC insured commercial certificate of deposit at 8% for nine years. What will the certificate of deposit earn at the end of 9 years? Which of the two alternatives will yield the most income?

Click here for the SOLUTION