Luis has a a management contract which grants him a lump sum payment of $20 million to
Fantastic news! We've Found the answer you've been seeking!
Question:
Luis has a a management contract which grants him a lump sum payment of $20 million to be paid upon the completion of his first five years of service. The company wants to set aside an equal amount of funds each year to cover this anticipated cash outflow. The company can earn 4.5 percent on these funds. How much must the company set aside each year for this purpose?
A.$3,655,832.79
B. $3,798,346.17
C. $3,801,033.67
D. $3,775,042.93
E. $4,038,018.22
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
Posted Date: