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BUSINESS DECISION: DON'T FORGET INFLATION! 'ou are the vice president of finance for Neptune Enterprises, Inc., a manufacturer of scuba diving gear. The company is planning a major plant expansion in 8 years. You have decided to start a sinking fund to accumulate the funds necessary for the project. Your company's investments rield 4% compounded quarterly. It is estimated that $1,800,000 in today's dollars will be required; however, the inflation rate on construction costs and plant equipment is expected to average 3% per year for the next 8 years. . Use the compound interest concept to determine how much will be required for the project, taking inflation into account. Round your answer to the nearest dollar. Click here for Table 11-1 . What sinking fund payments will be required at the end of every 3-month period to accumulate the necessary funds? Round your answer to the nearest cent. Click here for Table 12-1

BUSINESS DECISION: DON'T FORGET INFLATION! 'ou are the vice president of finance for Neptune Enterprises, Inc., a manufacturer of scuba diving gear. The company is planning a major plant expansion in 8 years. You have decided to start a sinking fund to accumulate the funds necessary for the project. Your company's investments rield 4% compounded quarterly. It is estimated that $1,800,000 in today's dollars will be required; however, the inflation rate on construction costs and plant equipment is expected to average 3% per year for the next 8 years. . Use the compound interest concept to determine how much will be required for the project, taking inflation into account. Round your answer to the nearest dollar. Click here for Table 11-1 . What sinking fund payments will be required at the end of every 3-month period to accumulate the necessary funds? Round your answer to the nearest cent. Click here for Table 12-1

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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This is business algebra please show your work so I can understand the question.  Thank you 

BUSINESS DECISION: DON'T FORGET INFLATION! 'ou are the vice president of finance for Neptune Enterprises, Inc., a manufacturer of scuba diving gear. The company is planning a major plant expansion in 8 years. You have decided to start a sinking fund to accumulate the funds necessary for the project. Your company's investments rield 4% compounded quarterly. It is estimated that $1,800,000 in today's dollars will be required; however, the inflation rate on construction costs and plant equipment is expected to average 3% per year for the next 8 years. . Use the compound interest concept to determine how much will be required for the project, taking inflation into account. Round your answer to the nearest dollar. Click here for Table 11-1 . What sinking fund payments will be required at the end of every 3-month period to accumulate the necessary funds? Round your answer to the nearest cent. Click here for Table 12-1
Transcribed Image Text:BUSINESS DECISION: DON'T FORGET INFLATION! 'ou are the vice president of finance for Neptune Enterprises, Inc., a manufacturer of scuba diving gear. The company is planning a major plant expansion in 8 years. You have decided to start a sinking fund to accumulate the funds necessary for the project. Your company's investments rield 4% compounded quarterly. It is estimated that $1,800,000 in today's dollars will be required; however, the inflation rate on construction costs and plant equipment is expected to average 3% per year for the next 8 years. . Use the compound interest concept to determine how much will be required for the project, taking inflation into account. Round your answer to the nearest dollar. Click here for Table 11-1 . What sinking fund payments will be required at the end of every 3-month period to accumulate the necessary funds? Round your answer to the nearest cent. Click here for Table 12-1
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