Kunkle Company wishes to earn 7% annually on its investments. If Kunkle makes an investment that equals or exceeds that rate, it considers it a success. Assume that Kunkle invests $2.4 million and gets $400,000 in return at the end of each year for X years. Assume that Kunkle can't invest for fractional parts of a year. What is the minimum value of X (number of years) for which Kunkle will consider the investment a success? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole number. (FV of $1, PV of $1, FVA of $1,PVA of $1, FVAD of $1 and PVAD of $1)
Kunkle Company wishes to earn 7% annually on its investments. If Kunkle makes an investment that equals or exceeds that rate, it considers it a success. Assume that Kunkle invests $2.4 million and gets $400,000 in return at the end of each year for X years. Assume that Kunkle can't invest for fractional parts of a year. What is the minimum value of X (number of years) for which Kunkle will consider the investment a success? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole number. (FV of $1, PV of $1, FVA of $1,PVA of $1, FVAD of $1 and PVAD of $1)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kunkle Company wishes to earn 7% annually on its investments. If Kunkle makes an investment that equals or exceeds that rate, it considers it a success. Assume that Kunkle invests $2.4 million and gets $400,000 in return at the end of each year for X years. Assume that Kunkle can't invest for fractional parts of a year. What is the minimum value of X (number of years) for which Kunkle will consider the investment a success?
Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole number. (FV of $1, PV of $1, FVA of $1,PVA of $1, FVAD of $1 and PVAD of $1)
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