The current plan is to spend $200,000 next year and another $300,000 in three years on new test equipment. You have been tasked with determining how much Boeing could spend now on this test equipment if the interest rate is 15% per year. In other words, what is the equivalent expenditure now as opposed to the current plan?

Answer rating: 100% (QA)

To determine the equivalent expenditure now for the planned future expenditures on test equipment we ... View the full answer