Cristina Suárez, Director of Marketing of TECKXIN will receive with certainty at the beginning of this year a salary of $1,200,000 and $1,350,000 at the beginning of next year. From her current endowment, she has planned to save $324,000, which will increase her future consumption by 30%.
- Compute the maximum present wealth (suppose that Cristina has access only to the Capital Market).
- Suppose Cristina is considering the possibility of buying real estate for which she will have to pay 35% of her initial salary. This real estate investment will generate a NFV (net future value) of $52,500. If the market rate does not change, compute the maximum present wealth (without possibility of future consumption) of Cristina Suárez assuming that she invests in real estate.
