A company would like to invest. In a capital budget project that will be worth $500,000 in

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A company would like to invest. In a capital budget project that will be worth $500,000 in 40 years.

How much should this company invest today, assuming an average inflation rate of 2% and a 10% annual return?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Posted Date: Jun 23, 2023 01:27 AM

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A company would like to invest. In a capital budget project that will be worth $500,000 in

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To calculate the present value of the investment taking into account inflation and the desired retur... View the full answer

Fundamentals of Corporate Finance

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