minimum value of X (number of years) for which Kunkle will consider the investment a success? Assume that Kunkle can't inv
minimum value of X (number of years) for which Kunkle will consider the investment a success? Assume that Kunkle can't inv
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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8. 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 $4.0 million and gets $800,000 in return at the end of each year for X years. What is the minimum value of X (number of years) for which Kunkle will consider the investment a success? Assume that Kunkle can't invest for fractional parts of a year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Multiple Choice
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2 years.
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5 years.
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7 years.
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4 years.
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