The Green Giant Corp. has a management contract with its CEO. The company will need to pay her $3,350,000 one-time when she has been with the company for 5 years The company wants to set aside an equal amount of funds each year until then to cover this anticipated cash outflow. The company can earn 8 percent on these funds. What should the annual deposit be to accumulate enough to cover the required payment?
The Green Giant Corp. has a management contract with its CEO. The company will need to pay her $3,350,000 one-time when she has been with the company for 5 years The company wants to set aside an equal amount of funds each year until then to cover this anticipated cash outflow. The company can earn 8 percent on these funds. What should the annual deposit be to accumulate enough to cover the required payment?
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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The Green Giant Corp. has a management contract with its CEO. The company will need to pay her $3,350,000 one-time when she has been with the company for 5 years The company wants to set aside an equal amount of funds each year until then to cover this anticipated cash outflow . The company can earn 8 percent on these funds. What should the annual deposit be to accumulate enough to cover the required payment?
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