A Houston American Cement factory will require an investment of $200 million to construct the cement plant. Delays beyond the anticipated implementation year of 2012 will require additional money to construct the factory. Assuming that the interest rate is 10% per year, compound interest, using both the single payment formula and spread sheet functions, determine the following for the board of directors of the South American company that plans to develop the plant. The equivalent investment needed if the plant is built in 2015. The equivalent investment needed had the plant been constructed in the year 2008.
A Houston American Cement factory will require an investment of $200 million to construct the cement plant. Delays beyond the anticipated implementation year of 2012 will require additional money to construct the factory. Assuming that the interest rate is 10% per year, compound interest, using both the single payment formula and spread sheet functions, determine the following for the board of directors of the South American company that plans to develop the plant. The equivalent investment needed if the plant is built in 2015. The equivalent investment needed had the plant been constructed in the year 2008.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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A Houston American Cement factory will require an investment of $200 million to construct the cement plant. Delays beyond the anticipated implementation year of 2012 will require additional money to construct the factory. Assuming that the interest rate is 10% per year, compound interest, using both the single payment formula and spread sheet functions, determine the following for the board of directors of the South American company that plans to develop the plant.
- The equivalent investment needed if the plant is built in 2015.
- The equivalent investment needed had the plant been constructed in the year 2008.
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