Pharoah Inc. is planning to expand operations into South America in 8 years. The first three years, Pharoah will spend on feasibility and marketing studies. Once those studies are complete, Pharoah plans to invest $205000 per year for the remaining five years. What amount will Pharoah have at the end of the eight-year period for the expansion assuming a 12% interest rate? (a) $2615238 (b) $1025000 (c) $1533455 (d) $1328455
Pharoah Inc. is planning to expand operations into South America in 8 years. The first three years, Pharoah will spend on feasibility and marketing studies. Once those studies are complete, Pharoah plans to invest $205000 per year for the remaining five years. What amount will Pharoah have at the end of the eight-year period for the expansion assuming a 12% interest rate? (a) $2615238 (b) $1025000 (c) $1533455 (d) $1328455
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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Pharoah Inc. is planning to expand operations into South America in 8 years. The first three years, Pharoah will spend on feasibility and marketing studies. Once those studies are complete, Pharoah plans to invest $205000 per year for the remaining five years. What amount will Pharoah have at the end of the eight-year period for the expansion assuming a 12% interest rate?
(a) $2615238 (b) $1025000 (c) $1533455 (d) $1328455
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