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 is able to save $25,000 per year for the next 5 years, how much money would it have if it is able to earn an 4% rate of return compounded annually? The following time value of money factors may be useful: Present Value Factors PV of a single sum for 5 periods at 4% = 0.82193 PV of an annuity for 5 periods at 4% = 4.45182 Future Value Factors FV of a single sum for 5 periods at 4% = 1.21665 FV of an annuity for 5 periods at 4% = 5.41632?
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