July 31, 2013
Chapter 5 – Annual Worth and Future Worth
1) Thus far, Josh’s annual investments have been in the stock market. What other investment options
might you suggest to Josh? What factors should Josh consider in his stock investment portfolio?
2) Josh wants to know how long it will take him to become a millionaire. (Don’t we all!) What factors
will affect this timeline?
3) To reach his $2 million goal within 30 years, Josh could determine the necessary uniform annual
savings. However, one might expect Josh’s investment capacity to grow as his career advances.
How would this impact an investment plan for Josh?
4) Think of a specific example of a business acquisition or a capital facilities project where a future
analysis would be an important consideration. Who might be most interested in this terminal value
of the investment? Why?