The CFO of Marta Aaraa Cement Industries knows that many of the diesel-fueled systems in its quarries

The CFO of Marta Aaraña Cement Industries knows that many of the diesel-fueled systems in its quarries must be replaced at an estimated cost of $20 million 10 years from now. A fund for these replacements has been established with the commitment of $1 million at the end of next year

(year 1) with 10% increases through the 10th year.

If the fund earns at 5.25% per year, will the company have enough to pay for the replacements?

Solve using

(a) tabulated factors, and

(b) a spreadsheet.