Assume DHL needs access to a stream of capital for the next 10 years. If DHL needs
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Question:
Assume DHL needs access to a stream of capital for the next 10 years. If DHL needs $2.5 million per year and can earn 4% interest compounded annually.
a.) how much must the company put away today to have these funds when needed?
b.) How much of DHL’s capital need will come from interest earned?
Round to the nearest dollar.
Please state formula used and explain your solution.
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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