A firm has been investing retained earnings to establish a building fund. The firm has retained\

$1.2

million,

$1.0

million, and

$950,000

, respectively, 3,2 , and 1 year ago. This year the firm has\

$1.8

million to invest. If the firm earns

18%

on invested funds, what is the value of the project\ that can be undertaken using the funds as a

25%

down payment?\ (a)

$6.28

million\ (b)

$7.42

million\ (c)

$25.1

million\ (d)

$29.7

million

A firm has been investing retained earnings to establish a building fund. The firm has retained $1.2 million, $1.0 million, and $950,000, respectively, 3,2 , and 1 year ago. This year the firm has $1.8 million to invest. If the firm earns 18% on invested funds, what is the value of the project that can be undertaken using the funds as a 25% down payment? (a) $6.28 million (b) $7.42 million (c) $25.1 million (d) $29.7 million