Question
Green Industries is a manufacturer of environmentally friendly household cleaners. Its business has been booming and it would like to save some money for a
Green Industries is a manufacturer of environmentally friendly household cleaners. Its business has been booming and it would like to save some money for a possible future expansion of its operating facilities. If Green saves $300,000 today and makes no additional payments, how much money would it have in 4 years assuming it could earn an 5% rate of return compounded annually? The following time value of money factors may be useful: Present Value Factors PV of a single sum for 4 periods at 5% = 0.82270 PV of an annuity for 4 periods at 5% = 3.54595 Future Value Factors FV of a single sum for 4 periods at 5% = 1.21551 FV of an annuity for 4 periods at 5% = 4.31013 $364,653 $388,963 $182,327 $243,102
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