Explain how dollar cost averaging affects your returns when drawing down your portfolio, for example, by withdrawing a fixed dollar amount from a stock market indexed fund in retirement. give an example. explain how dollar cost averaging affects your returns when accumulating assets, as in saving a regular dollar amount and investing in a stock market indexed fund before retirement. give an example. if the rate of return on u. s. small cap stocks averages 12.5%, and inflation averages 2.5%, how long will it take for you to double the amount of an investment?

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?