A paper company is considering purchasing a forest with an estimated annual return of $60,000 for 8
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A paper company is considering purchasing a forest with an estimated annual return of $60,000 for 8 years, after which time the forest will have no value. The company wants to set up a sinking fund to earn 6% of its investment and also to replace the purchase price. If money is invested in the fund at the end of each year and a compound annual profit of 4% is obtained, find the price the company must pay for the forest. Round the answer to the nearest hundred dollars.
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
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