ah Enterprises will need to upgrade the computer system in 5 years. They anticipate the upgrade to cost $98,900. If the discount rate is 15%, what will be the required yearly investment
ah Enterprises will need to upgrade the computer system in 5 years. They anticipate the upgrade to cost $98,900. If the discount rate is 15%, what will be the required yearly investment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Elijah Enterprises will need to upgrade the computer system in 5 years. They anticipate the upgrade to cost $98,900. If the discount rate is 15%, what will be the required yearly investment needed to obtain the money for the upgrade?
Round your (1+R)^n value to 2 decimal places and use that number for your final amount required rounded to the nearest dollar.

Transcribed Image Text:Future Value / (1+r)^n
/
= Amount Required
=
What would be required if the discount rate was 8%?
1
Future Value / (1+r)^n = Amount Required
11
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