1. Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her retirement in 34 years. She has found a mutual fund that will earn 8 percent annually. How much will Sarah have to invest? today? If Sarah earned an annual return of 16 ?percent, how soon could she then? retire?
2. Give an example of the economies of scale that may result from a merger and acquisition process. Also, what planning process needs to be put in place at the time of the M&A to protect these saving opportunities?