Bundle: Essentials of Business Communication, Loose-leaf Version, 11th + MindTap Business Communication, 1 term (6 months) Printed Access Card
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Chapter 9, Problem 9.7AAC
Summary Introduction

To determine:

A memo suggesting a philanthropic project for your company.

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Equipment is worth $225,243. It is expected to produce regular cash flows of $51,300 per year for 9 years and a special cash flow of $27,200 in 9 years. The cost of capital is X percent per year and the first regular cash flow will be produced in 1 year. What is X?
2 years ago, you invested $13,500. In 2 years, you expect to have $20,472. If you expect to earn the same annual return after 2 years from today as the annual return implied from the past and expected values given in the problem, then in how many years from today do you expect to have $55,607?
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