Coastal Shipping is setting aside capital to fund an expansion project .Funds earmarked for the project will accumulate vat the rate of $ 50,000 per month until the project is completed in two years.Once the project starts , costs will be incurred at a rate of $150,000 per month over 24 months.Coastal currently has $250,000 saved .What is the minimum number of month it will have to wait before it can start if money is worth 18 percent nominal, compounded monthly ? Assume that: 1. Cash flows are all at the end of the months. 2. The first $ 50,000 savings occurs one month from today. 3.The first $150,000 payment occurs one month after the start of the project . 4. The project must start at the beginning of a month.
Coastal Shipping is setting aside capital to fund an expansion project .Funds earmarked for the project will accumulate vat the rate of $ 50,000 per month until the project is completed in two years.Once the project starts , costs will be incurred at a rate of $150,000 per month over 24 months.Coastal currently has $250,000 saved .What is the minimum number of month it will have to wait before it can start if money is worth 18 percent nominal, compounded monthly ? Assume that:
1. Cash flows are all at the end of the months.
2. The first $ 50,000 savings occurs one month from today.
3.The first $150,000 payment occurs one month after the start of the project .
4. The project must start at the beginning of a month.
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