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You have been asked to evaluate a few options to deal with the environmental damage associated with the Sakhalin-2. A) Assume you will need to invest money today into a sinking fund account to fund the $10 -Billion-dollar reclamation in year 5. How much money do you need to invest today (time zero)? Assume you have other opportunities to earn money at 15% now and in the future. B) Assume you will need to invest money each year over the next five years (Years 1-5). How much money do you need to invest each year to fund the $10-Billion-dollar clean up? Assume you have other opportunities to earn money at 15% now and in the future.

You have been asked to evaluate a few options to deal with the environmental damage associated with the Sakhalin-2. A) Assume you will need to invest money today into a sinking fund account to fund the $10 -Billion-dollar reclamation in year 5. How much money do you need to invest today (time zero)? Assume you have other opportunities to earn money at 15% now and in the future. B) Assume you will need to invest money each year over the next five years (Years 1-5). How much money do you need to invest each year to fund the $10-Billion-dollar clean up? Assume you have other opportunities to earn money at 15% now and in the future.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You have been asked to evaluate a few options to deal with the environmental damage associated with the Sakhalin-2. A) Assume you will need to invest money today into a sinking fund account to fund the $10 -Billion-dollar reclamation in year 5. How much money do you need to invest today (time zero)? Assume you have other opportunities to earn money at 15% now and in the future. B) Assume you will need to invest money each year over the next five years (Years 1-5). How much money do you need to invest each year to fund the $10-Billion-dollar clean up? Assume you have other opportunities to earn money at 15% now and in the future. C) Assume you will need to invest money today and each year for the next five years (Years 0-5). How much money do you need to invest each year to fund the $10-Billion-dollar clean up? Assume you have other opportunities to earn money at 15% now and in the future. *Re-run these three calculations for $20 Billion, $30 Billion, $40 Billion, and $50 Billion.
Transcribed Image Text:You have been asked to evaluate a few options to deal with the environmental damage associated with the Sakhalin-2. A) Assume you will need to invest money today into a sinking fund account to fund the $10 -Billion-dollar reclamation in year 5. How much money do you need to invest today (time zero)? Assume you have other opportunities to earn money at 15% now and in the future. B) Assume you will need to invest money each year over the next five years (Years 1-5). How much money do you need to invest each year to fund the $10-Billion-dollar clean up? Assume you have other opportunities to earn money at 15% now and in the future. C) Assume you will need to invest money today and each year for the next five years (Years 0-5). How much money do you need to invest each year to fund the $10-Billion-dollar clean up? Assume you have other opportunities to earn money at 15% now and in the future. *Re-run these three calculations for $20 Billion, $30 Billion, $40 Billion, and $50 Billion.
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