A company has a liability of $10 million due in five years. The company plans to invest
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A company has a liability of $10 million due in five years. The company plans to invest in a project that will generate a return of 8% per annum for five years. The project requires an initial investment of $6 million. Assuming the company invests the entire $6 million in the project, how much additional funds does it need to set aside today to meet its liability of $10 million in five years?
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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