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b. You have and expected cash outflow of $500,000 in 10 years, and you use a discount rate of 10 percent, compounded annually. How much
b. You have and expected cash outflow of $500,000 in 10 years, and you use a discount rate of 10 percent, compounded annually. How much would you need right now as savings to cover the expected liability?
c. Refer to problem b. How much would you need to set aside at th end of each year for the next 10 years to cover the expected liability?
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