estimated cost of $5,000,000
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter9: Operating Activities
Section: Chapter Questions
Problem 18PC
Related questions
Question
On January 15, 2012, Dolan Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2016, at an estimated cost of $5,000,000. Dolan plans to make four equal annual deposits in a fund that will earn interest at 10% compounded annually. The first deposit was made on July 1, 2012. Future value factors are as follows:
Future value of 1 at 10% for 5 periods |
1.61 |
Future value of ordinary annuity of 1 at 10% for 4 periods |
4.64 |
Future value of annuity due of 1 at 10% for 4 periods |
5.11 |
Dolan should make four annual deposits of
Group of answer choices
$889,522.
$978,474.
$1,077,586.
$1,250,000.
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