To be able to begin a highway project, state regulations require that the money must be set aside at the beginning of the project to cover the entire project cost. The project is a 5-year project, the cost of the project will be $ 22 million in year 1, and costs are expected to increase by 6% each year due to anticipated design modifications. How much should the state put aside to build this highway, assuming money is invested in an account that earns 4% per year? Click here to access the TVM Factor Table calculator. $ 62.71 million Carry all interim calculations to 5 decimal places and then round your final answer to 3 decimal places. Please enter your answers in millions of dollars. The tolerance is ±0.005 million.
To be able to begin a highway project, state regulations require that the money must be set aside at the beginning of the project to cover the entire project cost. The project is a 5-year project, the cost of the project will be $ 22 million in year 1, and costs are expected to increase by 6% each year due to anticipated design modifications. How much should the state put aside to build this highway, assuming money is invested in an account that earns 4% per year? Click here to access the TVM Factor Table calculator. $ 62.71 million Carry all interim calculations to 5 decimal places and then round your final answer to 3 decimal places. Please enter your answers in millions of dollars. The tolerance is ±0.005 million.
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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Transcribed Image Text:To be able to begin a highway project, state regulations require that the money must be set aside at the beginning of the project to
cover the entire project cost. The project is a 5-year project, the cost of the project will be $ 22 million in year 1, and costs are expected
to increase by 6% each year due to anticipated design modifications. How much should the state put aside to build this highway,
assuming money is invested in an account that earns 4% per year?
Click here to access the TVM Factor Table calculator.
$
62.71
million
Carry all interim calculations to 5 decimal places and then round your final answer to 3 decimal places. Please enter your answers in
millions of dollars. The tolerance is ±0.005 million.
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