Three Smiles, Inc. wants to ensure that its charity dental practice can go on forever. They estimate that expenses next year will be $300,000 and then rise by 3% per year forever. Assuming an interest rate of 8%, how much does Three Smiles have to invest to ensure that the dentist practice can go on forever? a) $20,000,000 b) $12,000,000 c) $3,000,000 d) $6,000,000

Three Smiles, Inc. wants to ensure that its charity dental practice can go on forever. They estimate that expenses next year will be $300,000 and then rise by 3% per year forever. Assuming an interest rate of 8%, how much does Three Smiles have to invest to ensure that the dentist practice can go on forever? a) $20,000,000 b) $12,000,000 c) $3,000,000 d) $6,000,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 10P

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