Frank, who is married and the father of one, is 37 years old and expects to continue to work until age 65. He earns $129,000 per year and expects annual salary increases of 3%. Frank expects inflation to be 3% over his working life, and the appropriate risk-free discount rate is 7%. His personal consumption is equal to 26% of his after-tax earnings, and his combined federal and state marginal tax bracket is 30%. Calculate the life insurance coverage needed according to the Human Life Value Method.

Asmall town wants to build some new recreational facilities. the proposed facilities include a swimming pool, recreation center, basketball court and baseball field. the town council wants to provide the facilities which will be used by the most people, but they face budget and land limitations. the town has $400,000 and 14 acres of land. the pool requires locker facilities which would be in the recreation center, so if the swimming pool is built the recreation center must also be built. also, the council has only enough flat land to build the basketball court or the baseball field. the daily usage and cost of the facilities (in $1,000) are shown below. which facilities should they build? facilityusagecost ($1,000)landswimming pool4001002recreation center5002003basketball court3001504baseball field2001005