Elijah Enterprises will need to upgrade the computer system in 6 years. They anticipate the upgrade to cost $106,200. If the discount rate is 13%, 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.
Elijah Enterprises will need to upgrade the computer system in 6 years. They anticipate the upgrade to cost $106,200. If the discount rate is 13%, 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.
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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Elijah Enterprises will need to upgrade the computer system in 6 years. They anticipate the upgrade to cost $106,200. If the discount rate is 13%, 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:Elijah Enterprises will need to upgrade the computer system in 6 years. They anticipate the upgrade to cost
$106,200. If the discount rate is 13%, 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.
Future Value / (1+r)^n = Amount Required
What would be required if the discount rate was 7%?
Future Value / (1+r)^n = Amount Required
1
=
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