EGG is a life coaching and fitness coaching firm. They are considering an investment in a customer relationship management platform. The project involves $225,000 in first costs and is expected to generate net savings (in actual dollars) of $65,000 per year over its 5-year life. They forecast. A. EGG wants to buy a walk-in humidor in 5 years. How much money does EGG have to deposit in an investment account each year if their account earns 12% and they will see a price inflation of 8% per year? It currently costs $680.58. B. If inflation were 0% then how much do they have to save per year to be able to buy the humidor in 5 years?
EGG is a life coaching and fitness coaching firm. They are considering an investment in a customer relationship management platform. The project involves $225,000 in first costs and is expected to generate net savings (in actual dollars) of $65,000 per year over its 5-year life. They forecast. A. EGG wants to buy a walk-in humidor in 5 years. How much money does EGG have to deposit in an investment account each year if their account earns 12% and they will see a price inflation of 8% per year? It currently costs $680.58. B. If inflation were 0% then how much do they have to save per year to be able to buy the humidor in 5 years?
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
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EGG is a life coaching and fitness coaching firm. They are considering an investment in a customer relationship management platform. The project involves $225,000 in first costs and is expected to generate net savings (in actual dollars) of $65,000 per year over its 5-year life. They
A. EGG wants to buy a walk-in humidor in 5 years. How much money does EGG have to deposit in an investment account each year if their account earns 12% and they will see a price inflation of 8% per year? It currently costs $680.58.
B. If inflation were 0% then how much do they have to save per year to be able to buy the humidor in 5 years?
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