Question: Ralph Cosmetics has a $ 5 3 9 , 9 2 8 liability it must pay four years from today. The company is opening a

Ralph Cosmetics has a $

539, 928

liability it must pay four years from today. The company is opening a savings account so that the entire amount will be available when this debt comes due. The plan is to make an initial deposit today and then deposit an additional $

73, 471

at the end of each of the four years. The account pays a

5

percent rate of return. How much does the firm need to deposit today?

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