1. Performance Objective: Identify and describe 2 of the phases of the capital budgeting process.
2. You want to receive $5,000 per month in retirement. If you can earn 0.8% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement?
A) $482,204
B) $567,757
C) $595,808
D) $603,215
3. How much money do you need to deposit into your investment account today if you wish to withdraw $15,000 a year for twenty-five years? You expect to earn an average rate of return of 8%.
A) $160,121.64
B) $174,803.75
C) $165,276.53
D) $173,222.44