Alibaba group is setting aside capital to fund an environmental protection project. Funds earmarked for the...
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Alibaba group is setting aside capital to fund an environmental protection project. Funds earmarked for the project will accumulate at the rate of $50 000 per month until the project is completed in two years. Once the project starts, costs will be incurred at the rate of $150 000 per month over 24 months. Alibaba currently has $250 000 saved. What is the minimum number of months the Alibaba group will have to wait before the group can start the project if money is worth 24 percent nominal, compounded monthly? Assume that 1) Cash flows are all at the ends of months 2) The first $50 000 saving occurs one month from today 3) The first $150 000 payment occurs one month after the start of the project 4) The project must start at the beginning of a month Alibaba group is setting aside capital to fund an environmental protection project. Funds earmarked for the project will accumulate at the rate of $50 000 per month until the project is completed in two years. Once the project starts, costs will be incurred at the rate of $150 000 per month over 24 months. Alibaba currently has $250 000 saved. What is the minimum number of months the Alibaba group will have to wait before the group can start the project if money is worth 24 percent nominal, compounded monthly? Assume that 1) Cash flows are all at the ends of months 2) The first $50 000 saving occurs one month from today 3) The first $150 000 payment occurs one month after the start of the project 4) The project must start at the beginning of a month
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Related Book For
Modeling the Dynamics of Life Calculus and Probability for Life Scientists
ISBN: 978-0840064189
3rd edition
Authors: Frederick R. Adler
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