Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 14EA: How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one...
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Question
Suppose the value of an investment doubles every 7 years.
By what factor will its value rise in 30 years?
Expert Solution
Step 1
Given
- n=7 years
- Assuming, PV=$1 which means FV=$2
Using future value formula
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