Info

Beg. Book Value

250,000

215,000

187,000

164,600

146,680

182,344

160,875

139,406

117,938

96,469

- Depreciationa

35,000

28,000

22,400

17,920

14,336

21,469

21,469

21,469

21,469

21,469

End Book Value

215,000

187,000

164,600

146,680

182,344

160,875

139,406

117,938

96,469

75,000

aDepreciation is 20% of depreciable value (Remaining book value - Salvage) until year 6. In year 6, we switch to straight line for the remaining depreciable value over the remaining life because it yields a higher depreciation ($11,469). We also depreciate the second investment in year 5 straight line over 5 years.

aDepreciation is 20% of depreciable value (Remaining book value - Salvage) until year 6. In year 6, we switch to straight line for the remaining depreciable value over the remaining life because it yields a higher depreciation ($11,469). We also depreciate the second investment in year 5 straight line over 5 years.

Exhibit 5.4: Cash Flows to Equity from Paper Plant: Aracruz Cellulose
Retirement Planning For The Golden Years

Retirement Planning For The Golden Years

If mutual funds seem boring to you, there are other higher risk investment opportunities in the form of stocks. I seriously recommend studying the market carefully and completely before making the leap into stock trading but this can be quite the short-term quick profit rush that you are looking for if you am willing to risk your retirement investment for the sake of increasing your net worth. If you do choose to invest in the stock market please take the time to learn the proper procedures, the risks, and the process before diving in. If you have a financial planner and you definitely should then he or she may prove to be an exceptional resource when it comes to the practice of 'playing' the stock market.

Get My Free Ebook


Post a comment