CORPORATE FINANCE Essay Example

Finance ii

Question on financial management

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  1. Illustrating planned cash flow relating to retirement using time line

Running head: CORPORATE FINANCE

  1. Amount to save by retirement so as to meet retirement needs is as follows

Future value of relocation expenses:

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Future value of annuities (annual cash expenses):

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Total future value of expenses at retirement age 70:

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By retirement, he needs to have saved Running head: CORPORATE FINANCE 6

  1. Amount to save annual throughout 45 years in order to cater for retirement

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Annual savings from age of 25 to 70 is Running head: CORPORATE FINANCE 9