The expansion plans of Company A and Company B call for the government to add capacity for a new project in 5 years. The government wants to have P360,000,000 available before it announces the project. If the government sets aside P55,000,000 now and P90,000,000 in year 2, what uniform annual amount will it have to put in an account in years 3 through 5 to have the $360,000? Assume the account earns interest at 8% per year.
The expansion plans of Company A and Company B call for the government to add capacity for a new project in 5 years. The government wants to have P360,000,000 available before it announces the project. If the government sets aside P55,000,000 now and P90,000,000 in year 2, what uniform annual amount will it have to put in an account in years 3 through 5 to have the $360,000? Assume the account earns interest at 8% per year.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 17E
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The expansion plans of Company A and Company B call for the government to add capacity for a new project in 5 years. The government wants to have P360,000,000 available before it announces the project. If the government sets aside P55,000,000 now and P90,000,000 in year 2, what uniform annual amount will it have to put in an account in years 3 through 5 to have the $360,000? Assume the account earns interest at 8% per year.
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