You are assigned with building a laboratory. Construction and equipment will cost you $1 million today....

 

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You are assigned with building a laboratory. Construction and equipment will cost you $1 million today. Annual operating costs are estimated to be $150,000. The equipment needs to be replaced every four years and will cost $100,000 each time it is replaced. Using a 6% interest, how much money is required in the trust fund today to fund the laboratory forever. You are assigned with building a laboratory. Construction and equipment will cost you $1 million today. Annual operating costs are estimated to be $150,000. The equipment needs to be replaced every four years and will cost $100,000 each time it is replaced. Using a 6% interest, how much money is required in the trust fund today to fund the laboratory forever.

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