iage is a Year Expenditures 1 $40,000 2 $45,000 3 $80,000 $280,000 $550,000 6 $750,000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 2.2CE
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Be the Bridge is a non-profit organization that anticipates the following expenditures.
Year Expenditures
1
$40,000
2
$45,000
3
$80,000
4
$280,000
5
$550,000
6
$750,000
It would like to set aside money in an account today to ensure that it has enough money to cover these expenditures. How much money
would Be the Bridge need to invest if its money is kept in an account that earns 10% that is compounded annually?
Click here to access the TVM Factor Table calculator.
$
million
Carry all interim calculations to 5 decimal places and then round your final answer to three decimal places. Please enter your
answer in millions of dollars. The tolerance is ±0.002.
Transcribed Image Text:Be the Bridge is a non-profit organization that anticipates the following expenditures. Year Expenditures 1 $40,000 2 $45,000 3 $80,000 4 $280,000 5 $550,000 6 $750,000 It would like to set aside money in an account today to ensure that it has enough money to cover these expenditures. How much money would Be the Bridge need to invest if its money is kept in an account that earns 10% that is compounded annually? Click here to access the TVM Factor Table calculator. $ million Carry all interim calculations to 5 decimal places and then round your final answer to three decimal places. Please enter your answer in millions of dollars. The tolerance is ±0.002.
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