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4. The local gas company has asked the planning department of your company to help them plan for future cash flows. They want your company
4. The local gas company has asked the planning department of your company to help them plan for future cash flows. They want your company to pay an equal amount at the end of each year for the next 20 years rather than paying the yearly amounts as they become due at the end of each year for the next 20 years. Your current annual utility bill is $90,000. If you expect the inflation rate to average 6% per year, and that the gas company will pay you 9% interest each year for the next 20 years, what equal, annual amount should be paid at the end of each year from Year 1 through Year 20? 4. The local gas company has asked the planning department of your company to help them plan for future cash flows. They want your company to pay an equal amount at the end of each year for the next 20 years rather than paying the yearly amounts as they become due at the end of each year for the next 20 years. Your current annual utility bill is $90,000. If you expect the inflation rate to average 6% per year, and that the gas company will pay you 9% interest each year for the next 20 years, what equal, annual amount should be paid at the end of each year from Year 1 through Year 20
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